AUD/USD bulls target break of 0.7700

AUD/USD is currently better bid on short and longer time frames with the potential to break the 0.77 handle having made advances through 0.7680 and highs of 0.7687 so far. 

However, analysts at UOB suggested that while further AUD strength seems likely in the days ahead, the current rally appears to be running ahead of itself and a sustained break above 0.7695/00 seems unlikely. "From here, allow for a dip to 0.7645/50 but 0.7620 is expected to hold for a retest of 0.7695/00." From the data today, US durable goods orders were flat in August, compared to an expectation of a 1.5 percent decline, after the strong print in July was revised down, explained analysts at Wells Fargo, US Durable Goods Orders: Stabilization in manufacturing production - Wells Fargo

AUD/USD levels

With spot trading at 0.7680, we can see next resistance ahead at 0.7688 (Daily High), 0.7688 (Monthly High), 0.7696 (Yesterday's High), 0.7704 (Daily Classic R1) and 0.7707 (Weekly Classic R1). Support below can be found at 0.7666 (Daily Open), 0.7666 (Weekly High), 0.7666 (Hourly 20 EMA), 0.7658 (Daily Classic PP) and 0.7646 (Hourly 100 SMA).

"As highlighted in the Chart of the Day update last Friday (23/9/16), the undertone for AUD is positive but only a clear break above 0.7675 would indicate the start of a bullish phase," explained that analysts at UOB Group. "While the daily closing is not as strong as preferred, the price action suggests a valid ‘break’ and from here, we are targeting a move to 0.7740 followed closely by the August’s peak of 0.7760."