- AUD/USD rejected at 23.6% Fib, extends weakness to slip below 21-EMA at 0.7552.
- Risk-off across markets weighing on the antipodean, we see upside only on break above 0.76 handle.
- The pair has edged higher from session lows at 0.7515 and is currently trading at 0.7536 levels.
- Technical indicators are turning bearish. Stochs have trolled over from overbought levels and biased lower.
- Upside finds stiff resistance at 0.7553 (converged 5 DMA and 21-EMA). We see minor upside on break above.
- On the downside, 20-DMA is strong support at 0.7525. Decisive break below to see further weakness.
- On the data front we have Australia building permits (Wed). In the US calendar focus on ADP employment, NFP and Q1 GDP, second estimate.
Support levels - 0.7525(20-DMA), 0.75, 0.7447 (May 15, 16 low)
Resistance levels - 0.7553(converged 5 DMA and 21-EMA), 0.76, 0.7617 (50-DMA)
Recommendation: Good to go short on upticks around 0.7540/45, SL: 0.76, TP: 0.75/ 0.7450
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -4.52715 (Neutral), while Hourly USD Spot Index was at 97.6678 (Bullish) at 0825 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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