FxWirePro: AUD/USD consolidates above 55-EMA, break above cloud required for further upside

Chart - Courtesy Trading View 

AUD/USD was trading 0.34% lower on the day at 0.7246 at around 03:25 GMT.

The pair was consolidating break above 55-EMA, retrace below will negate any further gains. 

Global risks related to COVID-19 is a cause for concern, given the rising numbers of infections and impacts of global growth due to renewed lockdowns.

Further, risks associated with the Chinese property development giant Evergrande Group amid reports of missed debt payments weigh on sentiment. 

Focus also on the Federal Open market Committee (FOMC) minutes of the last Federal Reserve meeting which will be out this week. 

After the Fed's decision to double the pace of QE tapering and the projection of a significantly more hawkish dot plot, focus now is on policymakers' views leading to the decision. 

Technical analysis for the pair shows neutral bias on the daily charts. Decisive break above daily cloud will change near-term dynamics. 

Major Support Levels: 

S1: 0.7240 (55-EMA)

S2: 0.7207 (21-EMA)

Major Resistance Levels: 

R1: 0.7274 (50% Fib)

R2: 0.7287 (Cloud top)

Summary: AUD/USD trades with a neutral bias. Watch out for cloud breakout for further gains. Retrace below 55-EMA negates any further upside bias.