- AUD/USD is trading a narrow range in the Asian session, Doji formation seen on daily charts.
- The pair is trading a rising channel and price action has bounced of channel base support at 0.7575.
- Momentum studies are bullish, RSI strength seen at 57, and MACD is well above zero mark.
- Upside finds immediate resistance at 0.7605 (5-DMA), break above could see further upside.
- Resistnace above 0.7605 are located at 0.7638 (Jul 13 high) 0.7655 (trendline), 0.7676 (July 15 high).
- We see weakness only on break below channel base at 0.7575, test of 0.7513 (20-DMA) then likely.
- Q2 CPI data (due Wed 27 July) are keenly awaited after the extremely weak Q1 data and consequent downgrade to the RBA’s inflation profile.
Recommendation: Go long break above 0.7605, SL: 0.7575, TP: 0.7650/ 0.7675
