AUD/USD is holding above the 0.7600 support line and is currently trading at 0.7630 following a lower closing on Wednesday. The pair is tightly range-bound for more than a week with immediate support at 0.7600. The intraday resistance levels are at 0.7655 and 0.7688.

The pair is moving in a narrow trading range for more than a week now. Bears repeated attempts to breach below the lower side (0.7600) have failed especially the 1st April move that led to the formation of a hammer pattern at the bottom. The current price is near the SMA-14 resistance line while the SMA-50 resistance is at 0.7712. The RSI is near the neutral zone while the pair is below the mid-Bollinger band. The fact that the pair has held above the lower side of the trading range for more than a week and coupled with further expected weakness in the USD currently favors taking long entries. A decent buying would be at or near 0.7615 with a target of 50 to 60 pips and a stop-loss at 0.7585.

 An intraday closing above 0.7660 would be supportive of the bulls and they would be in a better position to move above the 0.7700 mark. On the downside, an intraday closing below 0.7600 would open the doors for a further drop in the coming days.

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By LCMS Traders FX Analysis Team

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