- The Aussie Dollar after struggling to break the 0.7475 resistance against the US Dollar moved down and broke a major support at 0.7420.
- There is a bearish trend line with resistance at 0.7430 formed on the hourly chart of AUD/USD.
- In Australia, the Retail Sales for April 2017 released by the Australian Bureau of Statistics posted a rise of 1%, more than the forecast of 0.3%.
AUD/USD Technical Analysis
The Aussie Dollar after a tiny bounce towards the 0.7475-80 resistance levels faced sellers against the US Dollar. Later, the AUD/USD pair started a downside move, breaking a support trend line at 0.7450 on the hourly chart.
The most important break was 0.7420, which was a major support and now it may act as a resistance.
The pair traded lower towards 0.7380 and formed a low at 0.7383 before starting a recovery.
AUD/USD Hourly Chart
An initial resistance is around the 23.6% Fib retracement level of the last decline from the 0.7474 high to 0.7383 low.
However, the most important resistance is at 0.7420. Above 0.7420, there is a bearish trend line with resistance at 0.7430 formed on the hourly chart.
The trend line resistance at 0.7430 also coincides with the 50% Fib retracement level of the last decline from the 0.7474 high to 0.7383 low. So, if the pair extends the current correction, it may face sellers near 0.7420-30 in the near term.
Australia’s Retail Sales
Today in Australia, the Retail Sales for April 2017 was released by the Australian Bureau of Statistics. The market was expecting the sales to increase by 0.3% in April 2017, compared with the previous month.
The actual result was better than the forecast, as the Retail Sales rose sharply by 1%, which was also a lot better than the last decline of 0.2% (revised).
As per the report, the following industries rose in trend terms in April 2017:
Food retailing (0.2%), other retailing (0.4%), Cafes, restaurants and takeaway food services (0.2%), and Department Stores (0.4%). Clothing, footwear and personal accessory retailing (-0.4%), and Household goods retailing (-0.1%) fell in trend terms in April 2017.
Overall, the AUD/USD ignored the data, and the recent correction may face sellers on the upside near 0.7415-20 going forward.