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FxWirePro: AUD/USD extends gains above 0.71 handle, further upside in store

  • Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-holds-above-070-handle-good-to-buy-dips-weakness-only-below-06920-149966) has hit targets.

  • AUD/USD is extending gains for the fourth consecutive session, pair currently at 0.7140, day's range 0.7067/0.7140.

  • Technicals indicate further upside for the pair, bias is higher, Stochs,RSI and MACD point north, gains upto 0.7250 likely.

  • Bid tone around the Aussie gathered pace after BoJ announced negative rates and hinted at more interest rate cuts if required. 

  • Later in the day, the US preliminary Q4 GDP could influence the broad based demand for the US dollars. 

  • The main data focus today will be the first estimate of US GDP in Q4, which is forecast to show a marked slowdown from annualised growth of 2.0% in the prior quarter.

  • Forecasts are for a reading of 0.8%. A reading which is better than the market forecast is bullish for the dollar.
Recommendation: Buy dips in the pair around 0.7120, Sl: 0.7040, TP: 0.72/0.7250

Resistance Levels:

R1: 0.7160 (Nov 13 highs)

R2: 0.72 (Dec 18 highs & psychological level)

R3: 0.7250 (trendline resistance)

Support Levels:

S1: 0.7068 (session lows)

S2: 0.7040 (5-DMA)

S3: 0.70 (Jan 28th lows)

  • Market Data
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