FxWirePro: 'Bullish Shark' pattern on AUD/USD raises scope for upside, good to go long on dips

• AUD/USD has shown completion of a 'Bullish Shark' pattern on daily charts.
   
• We see scope for upside in the pair, next bull target lies at 20-DMA at 0.7768.
   
• Aussie buoyed on upbeat Australia trade & housing data released earlier today.
   
• Australia's trade balance widened to AUD 1,745 million in September, exports rose 3% m/m, while imports growth stalled.
   
• Meanwhile, building approvals for September rose 1.5% m/m vs -1.0% expected and 0.4% last.
   
• The pair has bounced off major trendline support and broken above 200-DMA at 0.7695.
   
• Technical indicators are turning bullish. Stochs are on verge of rollover from oversold levels.
   
• RSI is biased higher and 5-DMA has turned north. We see bullish invalidation only on break below major trendline support at 0.7640

Support levels - 0.7679 (5-DMA), 0.7640 (trendline), 0.76, 0.7571 (July 5 low)

Resistance levels - 0.7768 (20-DMA), 0.78, 0.7835 (100-DMA), 0.7897 (Oct 13 high)

Recommendation: Good to go long on dips around 0.7680/90, SL: 0.7630, TP: 0.7740/ 0.78/ 0.7835.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 14.2105 (Neutral), while Hourly USD Spot Index was at 1.91331 (Neutral) at 0920 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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