FxWirePro: AUD/USD capped below major trendline resistance at 0.7725, bearish RSI divergence raises scope for downside

• AUD/USD is struggling to break above major trendline resistance at 0.7725.
   
• Doji formation seen on daily charts in the Asian session. Bearish RSI divergence raises scope for downside in the pair.
   
• 5-DMA is minor support at 0.7698. Break below finds major support by 20-DMA at 0.7657.
   
• We see a reversal in trend only on break below 20-DMA, test of 100-DMA at 0.7512 then likely.
   
• On the flipside, breakout above trendline resistance at 0.7720 could see test of 0.7778 (Nov 8 high).

Support levels - 0.7698 (5-DMA), 0.7657 (20-DMA), 0.7603 (23.6% Fib retrace of 0.7160 to 0.7740 rally)

Resistance levels - 0.7720 (Trendline), 0.7740 (Feb 23 high), 0.7778 (Nov 8 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Neutral               Neutral       
4H          Bullish                Neutral       
1D          Bullish                Neutral        
1W         Bullish                Neutral      

Recommendation: Watchout for break below 20-DMA to go short. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 57.3761(Slightly bullish), while Hourly USD Spot Index was at -147.394 (Highly bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.