- AUD/USD slide from 0.7385 highs hit on Dec 4th is seen cushioned by cloud top (currently at 0.7162) on multiple occasions.
- AUD/USD trades above yesterday’s 0.7270 high on short covering, USD looks vulnerable as market expecting very dovish Fed statement after rate hike, Dollar long positions are being liquidated at a faster pace than expected, could support the pair higher.
- RBA minutes which read upbeat on the overall Australian economic outlook, despite the recent decline in commodities’ prices and firmer Australian stocks contributing to the renewed buying interest.
- Technically on the charts, Stochs have rolled over from oversold and RSI is biased higher.
- The pair is currently trading at 0.7255, minor resistance is seen at Friday’s 0.7280 high with break targeting 0.7335 and then 0.7360.
- Support on the downside is located at 21 DMA and session lows at 0.7236, and further below at 0.7190 (55 & 100-Day MAs).
Recommendation: Good to buy dips around 0.7240, SL: 0.7190, TP: 0.7335Resistance Levels:R1: 0.7273 (10-Day MA)R2: 0.7281 (Daily High Dec 11)R3: 0.7335 (Daily High Dec 10)Support Levels:S1: 0.7236 (21 DMA)S2: 0.7190 (55 & 100-Day MAs)S3: 0.7160 (Cloud Top, Low Dec 14)
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