- Aussie dented on worse-than-expected Australian retail sales data, AUD/USD extends its three-day losing streak.
- Ongoing USD strength and weaker base metal prices likely to keep downside bias intact.
- Data released earlier today showed Australia's retail sales came in at -0.1% versus 0.3% expectations and 0.4% last.
- Markets largely ignored solid Australian building approvals data, which jumped 8.3% versus -1.4% exp and 2.2% last.
- The pair is currently holding strong trendline support at 0.76 levels.
- Technical indicators support downside, RSI and Stochs are biased lower.
- Price action has broken below 50-DMA and is on track to test 200-DMA at 0.7551.
- Violation at 200-DMA could see further downside, test of 0.7524 (38.2% Fib) and then 0.7491 (March 9 lows) then likely.
Support levels - 0.7587 (Mar 28 low), 0.7551 (200-DMA), 0.7524 (38.2% Fib retrace of 0.7160 to 0.7749 rally)
Resistance levels - 0.7631 (50-DMA), 0.7679 (Mar 30 high), 0.7710 (Sept 29, 2016 high)
TIME TREND INDEX OB/OS INDEX
1H Bearish Neutral
4H Bearish Neutral
1D Neutral Neutral
1W Neutral Neutral
Recommendation: Good to go short on break below major trendline at 0.76 level, SL: 0.7650, TP: 0.7550/ 0.7525/ 0.75
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -66.412(Bearish), while Hourly USD Spot Index was at 47.6041 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
