FxWirePro: AUD/USD ignores bullish engulfing pattern, fails to extend gains above 23.6% Fib

• AUD/USD has ignored a bullish engulfing pattern formed on Wednesday's candle. 
   
• The pair has failed to extend gains above 23.6% Fib and is extending weakness for the 2nd straight session.
   
• The major is trading in a long-term falling channel and we see that the longer-term bearish bias for the pair remains intact.
   
• Downside finds immediate support at 5-DMA at 0.7549, weakness to extend on close below.
   
• 'Bullish Engulfing' pattern supports further upside. Also, we see bullish divergence from price action on Stochs which adds upside support.
   
• Upside remians capped at 23.6% Fib at 0.7583, break above to see further upside.
   
• Focus now on the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held by early next week. 

Support levels - 0.7549 (5-DMA), 0.75, 0.7447 (May 15, 16 low), 0.7420 (trendline)

Resistance levels - 0.7583 (61.8% Fib), 0.76, 0.7607 (50-DMA)

Recommendation: Watch out for break above 23.6% Fib to go long. Target 0.76/ 0.7650/ 0.7685

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