AUD/USD has broken strong resistance at 0.72 levels, but the pair is strugling to extend gains beyond 0.7250.
- Price action is well above the cloud and momentum indicators along with major moving averages are biased higher.
- Aussie fails to benefit from the modest rebound seen in the base metals and broad based US dollar softness.
- RBA cash rate decision due Tuesday and GDP report due Wednesday next week likely to have major influence on the pair.
- On the day the pair is likely to track sentiment on the global equities and the much awaited US Q4 prelim GDP estimate due later in the NY session.
- 5-DMA at 0.7216 is immediate support on the downside, while session highs at 0.7256 is resistance on the upside.
Recommendation: Go long on conclusive break and close above 0.7250, target 0.7325/0.7385
