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FxWirePro: AUD/USD tests 200-DMA resistance, break above to propel the pair higher

AUD/USD chart - Trading View 

AUD/USD edges higher from session lows at 0.6631 and was hovering at 0.6648 at around 06:55 GMT.

Aussie shows little reaction to upbeat data and was trading muted amid fading optimism on hopes of economic restart and virus cure.

Looming US sanctions on China and likely protests in Hong Kong keep risk sentiment under pressure. 

Data released earlier today showed Australia’s first quarter (Q1) Construction Work Done bounced to -1.0% from -3.0% prior and bettered forecasts at -1.5%.

Further, China’s Industrial Profits dropped less than prior, fell by 4.3% year-on-year in April following the 34.9% slump in March.

AUD/USD is testing major resistance at 200-DMA at 0.6656. Decisive break above will fuel further gains in the pair.

Price action is above cloud and major moving averages. Volatility is rising and momentum studies support gains.

Break above 200-DMA eyes 88.6% Fib at 0.6859. Failure at 200-DMA and retrace below 110-EMA will result in a bearish resumption.

Major Support Levels: 0.6586 (5-DMA), 0.6507 (110-EMA), 0.6447 (55-EMA)

Major Resistance Levels: 0.6656 (200-DMA), 0.6708 (78.6% Fib), 0.6859 (88.6% Fib)

Guidance: Watch out for break above 200-DMA to go long, target 0.67/ 0.6850

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