FxWirePro: Bearish RSI divergence raises scope for downside in AUD/USD, good to go short on rallies

• AUD/USD hovers around 5-DMA at 0.7936, intraday bias lower.
   
• We have evidenced 'Bearish RSI divergence' on the 4-hourly charts which raises scope for downside.
   
• Upside finds major resistance at weekly 200-SMA at 0.8007, bullishness only on break above.
   
• Momentum indicators on daily charts are at overbought levels and are showing a turn lower.
   
• Further the occurrence of a long-legged Doji at highs suggests possible correction. Rollover of RSI and Stochs from overbought levels will confirm bearishness.
   
• The next big event risk is the  FOMC decision on Wednesday which will decide future price movement.
   
• In today's economic docket, the release of flash PMI print and existing home sales data will be looked upon for further impetus.
   

Support levels - 0.79, 0.7842 (23.6% Fib retrace of 0.73712 to 0.79878 rally), 0.7746 (20-DMA)

Resistance levels - 0.7967 (July 24 high), 0.7987 (July 20 high), 0.8007 (weekly 200-SMA)

Recommendation: Good to go short around 0.7940/45, SL: 0.80, TP: 0.79/ 0.7845/ 0.78

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -3.16318 (Neutral), while Hourly USD Spot Index was at -121.386 (Bearish) at 0520 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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