- AUD/USD edges lower from fresh 11-week highs at 0.7869, hovers around 200W SMA at 0.7856.
- Aussie under pressure following worse-than-expected trade balance data for December, which turned negative, lowering the investors risk sentiments.
- Australia trade balance data came out at AUD628 million deficit, underperforming analyst expectations for an AUD550 million surplus.
- The major is seen consolidating break above daily cloud trades in narrow range above 5-DMA.
- Strong bullish momentum likely to keep scope for further upside. Momentum studies on weekly charts are also bullish.
- 100-DMA at 0.7776 is strong support, we see weakness till 200-DMA at 0.7698 on break below. Violation at 200-DMA invalidates bullish bias.
- Focus now on US NFP data slated for release in the NA session for further impetus.
Support levels - 0.7836 (5-DMA), 0.7817 (cloud base), 0.7776 (100-DMA), 0.7699 (200-DMA)
Resistance levels - 0.7856 (200W SMA), 0.7875 (Oct 4 high), 0.7886 (61.8% Fib retrace of 0.81250 to 0.75012 fall)
Recommendation: Watch out for breakout at 200W SMA for further upside, target 0.7886/ 0.79/ 0.7980.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 99.6496 (Bullish), while Hourly USD Spot Index was at -68.7872 (Neutral) at 0510 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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