FxWirePro: AUD/USD slips below 5-DMA, Aussie ignores strong Australia housing data, bias lower, stay short

• AUD/USD falls despite a big jump in the Australia building permits data, actual 10.9% m/m vs. expected 1.5%.
   
• The major has failed to hold break above weekly 200-SMA at 0.80, bias turns bearish.
   
• Oscillators have shown a rollover from overbought levels and are now biased lower.
   
• MACD is on the verge of a bearish crossover on signal line. Bearish divergence seen on 4 hourly charts further adds to downside support.
   
• Scope for test of 23.6% Fib retrace of 0.73728 to 0.80656 rally at 0.79. Violation there will take the pair to 20-DMA at 0.7847.
   
• On the upside, weekly 200-SMA at 0.8008 is immediate resistance, bullish extension only on close above.
   
• RBA quarterly statement Fri will provide updates on key economic indicators and provide further direction.

Support levels - 0.7902 (23.6% Fib retrace of 0.73728 to 0.80656 rally), 0.7847 (20-DMA), 0.7801 (38.2% Fib)

Resistance levels - 0.8000 (weekly 200-SMA), 0.81, 0.8163 (May 2015 highs), 0.82

Recommendation: Good to go short on rallies around 0.7950/60, SL: 0.8010, TP: 0.79/ 0.7850/ 0.7810

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -43.6527 (Neutral), while Hourly USD Spot Index was at 31.7983 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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