FxWirePro: AUD/USD retains bearish bias, unfazed by slightly better retail sales data

AUD/USD chart on Trading View used for analysis

• AUD/USD erases mild gains, slips lower from session highs at 0.7084 to trade at 0.7066 at the time of writing.
   
• Aussie largely muted after slightly better than expected Australia retail sales data.
   
• Data released by ABS earlier today showed Australia's Retail Sales clocked in at 0.3%, better than the forecast 0.2% and far better than the previous period's 0.0% flatline.


• Overall bias remains firmly bearish heading into the US Non-Farm Payrolls Friday. 
   
• Markets expect a healthy non-farm payrolls print on Friday following the ADP report and strong ISM services data. 
   
• US labor market is forecast to have produced 188,000 new jobs in September (risk is for a stronger number).
   
• The major is extending grind lower in a downward sloping channel and we see scope for test of channel base at 0.7020.
   
• Break below channel to see weakness accentuate. Scope then for test of 88.6% Fib at 0.6976.

Support levels - 0.7020 (channel base), 0.6976 (88.6% Fib)

Resistance levels - 0.71 (78.6% Fib), 0.7129 (5-DMA)

Call Update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-fades-upside-post-RBA-extends-weakness-below-072-handle-stay-short-on-rallies-1437190) has hit all targets.

Recommendation: Book partial profits at lows. Trail SL to 0.7130. Target 0.7025/ 0.6980. 

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -110.488 (Bearish), while Hourly USD Spot Index was at 61.4937 (Neutral) at 0345 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.