FxWirePro: AUD/USD struggles at channel top, breaks below 50-DMA, good to go short on rallies

• Aussie remains weaker amid Australia’s rising household debt risks and as rising risk aversion dents higher-yielding currencies.
   
• AUD/USD slumped lower in Thursday's trade after Governor Phillip Lowe suggested that the RBA could be far from considering any monetary policy tightening.
   
• The pair closed below 50-DMA at 0.7943 and is trading in a narrow range so far in the Asian session.
   
• Technical studies have turned bearish, we also evidence bearish RSI divergence which adds scope for downside.
   
• Cloud offers immediate strong support on the downside, break below will see further drag.
   
• Technical studies on weekly charts are also bearish, pair struggling at channel top and oscillators retrace from overbought levels.
   
• Bearish invalidation only on breakout above channel top at 0.8140.

Support levels - 0.79, 0.7891 (23.6% Fib retracement of 0.7328 to 0.8065 rally), 0.78 (Aug 15 low)

Resistance levels - 0.7945 (50-DMA), 0.7971 (5-DMA), 0.7982 (20-DMA)

Recommendation: Good to go short on rallies around 0.7930/45, SL: 0.80, TP: 0.79/ 0.7870/ 0.78/ 0.7784

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -61.7152 (Neutral), while Hourly USD Spot Index was at 56.7628 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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