AUD/USD breaks major trendline resistance at 0.7925, scope for further upside.
The pair retraced dip below 23.6% Fib and spiked to fresh session tops near 0.7933 after disappointing US housing market data overnight.
U.S. housing starts tumbled to an annualized pace of 1.155 million units in July, down 4.8% from 1.215 million units in the previous month.
Further, Australia jobs data mixed in July. The economy added 27.9K jobs, beating the estimated figure of 20K. The June figure was revised higher to 20K from 14K.
However, there was an unexpected drop of 20.3K in the full time jobs in July. The part time jobs registered a growth of 48.2K in July compared to the prior month’s drop of 48.0K.
RBA is also talking down the Aussie, trying to discourage further gains in the exchange rate, which might limit gains.
Stochs have rolled over from oversold levels and RSI is also biased higher.
Support levels - 0.7927 (20-DMA), 0.7892 (23.6% Fib retrace of 0.7328 to 0.8065 rise), 0.7885 (5-DMA)
Resistance levels - 0.7987 (July 20 high), 0.80, 0.8022 (Upper BB), 0.8065 (July 27 high)
Good to go long on dips around 0.7930/40, SL: 0.7886, TP: 0.7990/ 0.80/ 0.8025
The pair retraced dip below 23.6% Fib and spiked to fresh session tops near 0.7933 after disappointing US housing market data overnight.
U.S. housing starts tumbled to an annualized pace of 1.155 million units in July, down 4.8% from 1.215 million units in the previous month.
Further, Australia jobs data mixed in July. The economy added 27.9K jobs, beating the estimated figure of 20K. The June figure was revised higher to 20K from 14K.
However, there was an unexpected drop of 20.3K in the full time jobs in July. The part time jobs registered a growth of 48.2K in July compared to the prior month’s drop of 48.0K.
RBA is also talking down the Aussie, trying to discourage further gains in the exchange rate, which might limit gains.
Stochs have rolled over from oversold levels and RSI is also biased higher.
Support levels - 0.7927 (20-DMA), 0.7892 (23.6% Fib retrace of 0.7328 to 0.8065 rise), 0.7885 (5-DMA)
Resistance levels - 0.7987 (July 20 high), 0.80, 0.8022 (Upper BB), 0.8065 (July 27 high)
Good to go long on dips around 0.7930/40, SL: 0.7886, TP: 0.7990/ 0.80/ 0.8025