AUD/USD Gains Amid Weakness in the USD

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 JUL 29, 2021

AUD/USD is trading 0.32% higher to 0.7400 following the weakness in the USD. The US Dollar Index (DXY) started dropping from this week’s high and currently appears to be challenging the 92.00 level. The pair’s intraday resistance levels are at 0.7418 and 0.7455. The near-term support areas are at 0.7374 and 0.7342.

On the intraday chart, the pair has moved above the ongoing narrow trading range. The moving averages are currently giving mixed signals. The pair is keeping above the SMA-14 Resistance line (0.7392) at the moment while the SMA-50 resistance line is at 0.7560. Following the bullish momentum, the RSI has gone up to 46 and appears to be favoring the bulls. Following the intraday upwards momentum and analyzing USD weakness the pair is good for buying entries on small dips using the following levels

Direction: Buy

Entry: 0.7370

Take Profit Range: 0.7410 – 0.7430

Stop-Loss: 0.7330

An intraday closing above 0.7420 would further strengthen the bulls and the chances of a higher weekly closing would be high. On the downside, bears need a sustained price action below 0.7340 to regain control.