- Aussie struggling to extend upside after mixed China Data Dump.
- Data released earlier today showed China’s April industrial production rose 6.5% y/y in April, missing the estimate of 7.1%.
- China's retail sales jumped 10.7%, beating the estimate of 10.7%. Urban investment growth dropped to 8.9% from 9.2%.
- AUD/USD has been extending gains from 4-month lows at 0.7328, is currently holding above 5-DMA.
- We have seen a 'Bullish Bat Pattern' formation on daily charts, scope for further upside.
- Broadly weaker US dollar, in the wake of downbeat US retail sales and CPI data, keep the recovery intact.
Support levels - 0.7374 (5-DMA), 0.7340 (trendline), 0.7329 (May 9 low)
Resistance levels - 0.7428 (23.6% Fib retrace of 0.7749 to 0.7328 fall), 0.7460 (20-DMA), 0.7490 (38.2% Fib and trendline)
TIME TREND INDEX OB/OS INDEX
1H Bullish Neutral
4H Bullish Neutral
1D Bullish Neutral
1W Neutral Neutral
Recommendation: Good to go long on dips around 0.7390, SL: 0.7340, TP: 0.7430/ 0.7460/ 0.75
