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FxWirePro: AUD/USD trades shy of 55-EMA, 'bullish divergence' keeps scope for further upside

AUD/USD chart on Trading View used for analysis

  • AUD/USD spikes past 21-EMA resistance, is trading 1.23% higher at 0.7158 at the time of trading.
     
  • Aussie buoyed after robust trade balance data released earlier today. News that China mulls further stimulus to counter the economic slowdown adds further optimism.
     
  • The antipodean also helped by Chinese Caixin Manufacturing PMI data that managed to hold above the 50.0 critical level.
     
  • The major trend for the pair remains bearish. But break above stiff resistance at 21-EMA raises scope for upside. 
     
  • Further, we see bullish divergence on RSI and Stochs which adds to the bullish bias.
     
  • Focus now on US employment data for further direction. Break above 55-EMA targets 0.7287.

Support levels - 0.7112 (21-EMA), 0.7035 (Lower BB)

Resistance levels - 0.7185 (55-EMA), 0.72, 0.7287 (110-EMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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