AUD/USD trade idea : FxWirePro | May 28, 2018

Aussie supported by risk-on as US and N.Korea seek to proceed with the June Summit.

Further broad-based USD selling across the board in the Asian session supporting the pair higher.

AUD/USD 0.25% edged higher on the day, trades 0.39% up at 0.7574 at the time of writing.

The major is extending choppy trade along 21-EMA and we see bias higher.

We evidence a bullish divergence on Stochs which raises scope for upside.

The pair is currently struggling at 23.6% Fib at 0.7583, decisive breakout will see test of 50-DMA at 0.7621.

On the downside, 20-DMA is strong support at 0.7524. Break below to see resumption of weakness.

On the data front we have Australia building permits (Wed). In the US calendar focus on ADP employment, NFP and Q1 GDP, second estimate.

Support levels - 0.7556 (21-EMA), 0.7524 (20-DMA), 0.75

Resistance levels - 0.76, 0.7625 (55-EMA), 0.7688 (converged 110-EMA & 38.2% Fib)

Good to go long on decisive break above 23.6% Fib, SL: 0.7525, TP: 0.7625/ 0.7685/ 0.77