FxWirePro: AUD/USD recovery capped below 0.79 handle, good to go short on rallies

• AUD/USD extending decline after failure to hold break above 20-DMA on Feb 16th trade.
   
• The pair has broken below 5-DMA and is currently holding support at 23.6% Fib at 0.7847.
   
• Upside remains capped at 0.79 handle and we see resumption of upside only on break above.
   
• Break below 23.6% Fib will see next major support at cloud top at 0.7817.
   
• Technical studies have turned bearish. RSI and Stochs are now biased lower.
   
• We see -ve DMI crossover which supports further weakness in the pair.

Support levels - 0.7847 (23.6% Fib), 0.7817 (cloud top), 0.7772 (200-DMA)

Resistance levels - 0.79 (5-DMA), 0.7932 (20-DMA), 0.7991 (61.8% Fib)

Recommendation: Good to go long on rallies around 0.7860/70, SL: 0.7935, TP: 0.7820/ 0.7780/ 0.7760.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -78.715 (Bearish), while Hourly USD Spot Index was at 140.341 (Bullish) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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