Aussie better bid after upbeat Australia trade & housing data released earlier today.
Australia's trade balance widened to AUD 1,745 million in September vs. AUD 1200 million expected. Exports rose 3% m/m, while imports growth stalled.
Meanwhile, building approvals for September rose 1.5% m/m vs -1.0% expected and 0.4% last.
Technical indicators have turned in the pair. Stochs have rolled over from oversold levels.
and Stochs are biased higher and is on verge of crossover on signal line.
The pair has retraced break below 100-DMA and is currently testing 50-DMA at 87.96.
We see scope for further upside in the pair. Next likely target for bulls lies at 88.70 ( resistance).
On the flipside, break below 100-DMA could see resumption of further downside.
Support levels - 87.35 (nearly converged 5 and 100 DMAs), 87, 86.83 (38.2% Fib retrace of 81.48 to 90.30 rise)
Resistance levels - 87.96 (50-DMA), 88.22 (23.6% Fib), 88.70 ( )
Good to go long on dips around 87.70/80, SL: 87.30, TP: 88.20/ 88.70