- AUD/USD was rejected at major resistance at 0.7815 (converged 200-DMA and trendline), bias bearish.
- The major has slipped below 20-DMA at 0.7717 and we see scope for further weakness.
- Technical indicators have turned bearish. Stochs have rolled over from overbought levels. RSI is below 50 and biased lower.
- We see -ve DMI crossover on +ve DMI which adds to the bearish bias. MACD is on verge of bearish crossover on signal line.
- The pair is trading in a 'Symmetric Triangle' pattern and break below 20-DMA has raised scope for test of 'Triangle Base' at 0.7665.
- Violation at 0.7665 support could see further weakness. Bearish invalidation only above 5-DMA at 0.7752.
Support levels - 0.7665 (trendline), 0.7637 (78.6% Fib), 0.76, 0.7573 (88.6% Fib)
Resistance levels - 0.7716 (20-DMA), 0.7743 (61.8% Fib), 0.7751 (5-DMA)
Recommendation: Good to go short on rallies around 0.7710, SL: 0.7750, TP: 0.7675/ 0.7665/ 0.7640.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -42.7402 (Neutral), while Hourly USD Spot Index was at 114.673 (Bullish) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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