- AUD/USD trades 0.16% lower on the day at 0.7311 at the time of writing.
- Upside in the pair remains capped at 50-DMA at 0.7373, any upside only on break above.
- Australia's new Prime Minister lifted the political uncertainty and prevented the Australian dollar from falling to fresh yearly lows.
- Relief rally was short-lived. We see scope for test of 0.72 levels (nearly converged trendline and Aug 15 low).
- Major trend remains bearish and the major is struggling at 21-EMA resistance.
- That said, we evidence bullish divergence on RSI and Stochs which keeps scope for upside.
Support levels - 0.7335 (21-EMA), 0.7373 (50-DMA)
Resistance levels - 0.73, 0.7202 (Aug 15 low)
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 52.0166 (Neutral), while Hourly USD Spot Index was at -17.3374 (Neutral) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
