FxWirePro: Aussie bulls lack impetus, AUD/USD confined to narrow range ahead of RBA
Monday, October 3, 2016 5:29 AM UTC
- Aussie struggles to extend gains despite upbeat Australian MI and AIG manufacturing data released earlier on the day.
- The pair remains confined to a narrow range ahead of RBA policy decision due tomorrow.
- Bulls lack impetus amid holiday-thinned markets, pair struggling to extend recovery above 5-DMA at 0.7660.
- Stochs are on the verge of a rollover from overbought territory, RSI has a neutral bias.
- The pair finds strong support at 0.76 level which is converged 20 and 50 day MA and rising trendline.
- Break below 0.76 to confirm weakness, drag till major trendline support at 0.7485 levels likely.
- Major support levels - 0.7620 (cloud top), 0.76 (20 & 50 DMA and trendline), 0.7589 (Sept 30 low)
- Major resistance levels - 0.77 (trendline), 0.7723 (88.6% Fib), 0.7732 (Sept 8 high)