FxWirePro: AUD/USD eyes 20-DMA at 0.7864, bias higher, stay long

• AUD/USD extends gains above 5-DMA, hits fresh weekly highs at 0.7842, bias higher.
   
• Aussie extends gains despite weak China trade data, big beat on imports figures supports.
   
• China's trade balance for Sept, in Yuan terms, came in at CNY+193.00 bn vs +266.05 bn expected and +286.50 bn last. 
   
• Exports came at 9.0% y/y vs 10.9% expected, while imports rose 19.5% y/y vs 16.5% expected.
   
• Technical indicators have turned bullish, RSI is sharply higher, Stochs are on verge of rollover from oversold levels.
   
• MACD is on verge of bullish crossover on signal line, which if confirmed adds to bullish bias.
   
• 20-DMA at 0.7864 is next major resistance, break above could see test of 50-DMA at 0.7911.
   
• On the flipside, we see weakness on break below 200-DMA at 0.7677.
   
• U.S. CPI data will be in focus after FOMC members showed concerns that the recent weakness in inflation may not just be transitory.

Support levels - 0.7802 (1H 200-SMA), 0.7794 (5-DMA), 0.7733 (Oct 6 low), 0.77, 0.7677 (200-DMA)

Resistance levels - 0.7864 (20-DMA), 0.79, 0.7911 (50-DMA), 0.7930 (Weekly 200-SMA)

Recommendation: Bias higher, stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 29.016(Neutral), while Hourly USD Spot Index was at -79.1687 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest