18.01.201701:00:00UTC+00Fxwirepro: Aud/usd Spikes Past 0.75 Handle, Bias Higher, Good to Go Long on Dips

Technical Analysis:

• AUD/USD has spiked past major hurdle at 0.75 which was converged 100 & 200 DMAs.
• Momentum with the bulls, we see scope for test of 78.6% Fib at 0.7645.
• Minor weakness on intraday charts should be used as buying opportunities.
• Weakness only on close below 0.75 handle, test of 0.7469 (50% Fib) then likely.
• On the weekly charts, the pair trades above 100-MA at 0.7432. 
• RSI and Stochs on weekly charts are biased higher and MACD is on verge of a bullish crossover.

Fundamental Factors:

• Aussie continues to gain support from solid Chinese bulk prices and the general correction in USD
• Data released earlier today showed Australia Westpac Consumer Confidence Index increased to 97.4 in January from previous 97.3
• US CPI release and Yellen speech will be in focus - as the unwinding of the Trump trade appears to have gathered pace.

TIME  TREND INDEX  OB/OS INDEX    

1H       Bearish          Neutral    
4H       Neutral           Neutral        
1D       Bullish           Neutral        
1W      Bullish           Neutral  

Support levels - 0.7512 (5-DMA), 0.75 (1H 200-SMA, 100&200 DMA), 0.7465 (Jan 17 low), 0.74

Resistance levels - 0.7568 (Jan 17 high), 0.76, 0.7645 (78.6% Fib)

Call Update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-spikes-past-50-DMA-momentum-bullish-stay-long-485038) has achieved all targets.

Recommendation: Good to go long on dips around 0.7520, SL: 0.7470, TP: 0.7570/ 0.76/ 0.7645