FxWirePro: AUD/USD slips below 23.6% Fib, eyes 50-DMA at 0.7752, good to short rallies

• Aussie remains bid as risk sentiment stabilizes as North Korea tensions fade.
   
• Muted reaction seen towards Australia wage inflation numbers which matched estimates.
   
• Data released earlier today showed Australia second quarter wage price index came-in as expected at 1.9% y/y and 0.5% q/q.
   
• The pair is trading with a bearish bias, has slipped below 23.6% Fib and is on track to test 50-DMA at 0.7752.
   
• Upside capped below 5-DMA and break above could see gains upto 20-DMA at 0.7924.
   
• On the downside, violation at 50-DMA could see test of 38.2% Fib and then cloud top.

Support levels - 0.78, 0.7786 (July 18 low), 0.7752 (50-DMA), 0.7719 (38.2% Fib retrace of 0.71599 to 0.80656 rally)

Resistance levels - 0.7852 (nearly converged 23.6% Fib and 5-DMA), 0.79, 0.7924 (20-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-5-DMA-Aussie-ignores-strong-Australia-housing-data-bias-lower-stay-short-833063) has hit all targets.

Recommendation: Good to go short on rallies around 0.7840/50, SL: 0.79, TP: 0.78/ 0.7755/ 0.7720

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -9.6252 (Neutral), while Hourly USD Spot Index was at 60.5235 (Neutral) at 0420 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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