Aussie dumped on dismal data, AUD/USD may test 200-DMA at 0.7746
AUD/USD hit 4-week lows of 0.7855 as Aussie was dumped across the board on dismal retail sales and trade data.
Australia retail sales dropped 0.5 percent in December, missing market expectations for a 0.2 percent drop.
Further, the trade balance recorded a deficit of AUD 1.36 billion in December compared to the AUD 0.2 billion surplus.
The pair has broken support at 38.2% Fib at 0.7893 and we see scope for test of next major support at 0.7825 (200W-SMA).
Violation there will see test of 0.7746 (nearly converged 200-DMA and 61.8% Fib).
Technical studies are highly bearish, focus now on RBA monetary policy decision for further impetus.
The RBA likely to stay pat, while commentary will be keenly watched for cues.
Support levels - 0.7825 (200W-SMA), 0.78, 0.7746 (200-DMA)
Resistance levels - 0.7893 (38.2% Fib retrace of 0.7501 to 0.8135 rally), 0.7952 (5-DMA), 0.7983 (20-DMA)
Good to go short on rallies around 0.7880/0.79, SL: 0.7985/ TP: 0.7825/ 0.78/ 0.7745
Australia retail sales dropped 0.5 percent in December, missing market expectations for a 0.2 percent drop.
Further, the trade balance recorded a deficit of AUD 1.36 billion in December compared to the AUD 0.2 billion surplus.
The pair has broken support at 38.2% Fib at 0.7893 and we see scope for test of next major support at 0.7825 (200W-SMA).
Violation there will see test of 0.7746 (nearly converged 200-DMA and 61.8% Fib).
Technical studies are highly bearish, focus now on RBA monetary policy decision for further impetus.
The RBA likely to stay pat, while commentary will be keenly watched for cues.
Support levels - 0.7825 (200W-SMA), 0.78, 0.7746 (200-DMA)
Resistance levels - 0.7893 (38.2% Fib retrace of 0.7501 to 0.8135 rally), 0.7952 (5-DMA), 0.7983 (20-DMA)
Good to go short on rallies around 0.7880/0.79, SL: 0.7985/ TP: 0.7825/ 0.78/ 0.7745
