FxWirePro: Bullish engulfing pattern seen on AUD/USD, stay long on break above 23.6% Fib at 0.7583

• AUD/USD is trading in a long-term falling channel and we see that the longer-term bearish bias for the pair remains intact.
   
• For a near-term we see volatility on account on the emerging geo-political scenarios in EU and US-China trade wars.
   
• The pair rallied strongly on Wednesday as political tensions within Italy eased and risk sentiment found renewed demand.
   
• AUD/USD pared losses from session lows at 0.7476 to touch session highs at 0.7583.
   
• Technical studies show that the pair has formed a 'Bullish Engulfing' pattern on the daily candle which supports further upside.
   
• Also, we see bullish divergence from price action on Stochs which adds upside support.
   
• Upside remains capped at 23.6% Fib at 0.7583, break above to see further upside.

Support levels - 0.7546 (5-DMA), 0.75, 0.7447 (May 15, 16 low), 0.7420 (trendline)

Resistance levels - 0.7583 (61.8% Fib), 0.76, 0.7610 (50-DMA)

Recommendation: Watch out for break above 23.6% Fib to go long. Target 0.76/ 0.7650/ 0.7685

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