AUD/USD chart on Trading View used for analysis
- AUD/USD resumes upside, tests 55-EMA resistance at 0.7164, hits 3-week highs at 0.7171.
- Aussie remains bid amid risk-on action in Asian equities, largely ignores poor building permits data.
- Data released earlier today showed Australian building permits weakened once again, falling -9.1% on Wednesday from 15.0 in the previous month and worse than forecast of 2.9%.
- The pair has resumed upside after a brief pause on Tuesday's trade, up 0.25% at 0415 GMT.
- Break above stiff resistance at 55-EMA finds next major hurdle at daily cloud.
- Long-term bias is bearish. But hammer formation on the weekly candle has rasied scope for upside.
- Break above daily cloud will see 0.7335 (trendline resistance). Retrace below 21-EMA will see further weakness.
Support levels - 0.7120 (21-EMA), 0.7113 (5-DMA), 0.7021 (Oct 26 low)
Resistance levels - 0.7164 (55-EMA), 0.7183 (cloud base), 0.7224 (110-EMA)
Recommendation: Watch out for break above daily cloud to go long
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
