- AUD/USD spikes higher boosted by upbeat Australia retails sales data.
- Australia retail sales arrived at +0.4% m/m, beating expectations at +0.3%.
- Further, Australia ANZ Job Advertisements increased to 1.5% in May from previous -0.2%.
- The major is currently trading at 0.7613, up 0.65% on the day, bias higher.
- The pair is extending higher after a 'Bullish Engulfing' pattern. We also see bullish divergence on Stochs which adds upside support.
- Price action has broken above 23.6% Fib at 0.7538 and 50-DMA at 0.7605 and is on track to test channel top at 0.7640.
- Upside could be limited by strong USD. Better-than-expected US employment and PMI data keeps the Fed on track for a June hike.
- Channel top at 0.7640 is stiff resistance and any further gains only on decisive break above.
- Focus now on the Reserve Bank of Australia’s (RBA) monetary policy decision, scheduled to be held on Tuesday.
Support levels - 0.7605 (50-DMA), 07583 (23.6% Fib), 0.7565 (5-DMA)
Resistance levels - 0.7640 (channel top), 0.7672 (cloud base), 0.7676 (110-EMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-Bullish-engulfing-pattern-seen-on-AUD-USD-stay-long-on-break-above-236-Fib-at-07583-1341161) has hit TP1.
Recommendation: Book partial profits. Trail SL to 0.7565. Hold for further upside.
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