Note

AUD/USD Price Analysis: Retail Sales risk ahead, bears testing 0.7270 key zone

· Views 36
  • AUD/USD bears stepping in ahead of Retail Sales. 
  • Bears are seeking a downside daily extension to test below 0.72 the figure and beyond. 

AUD/USD has started to test the W-formation's neckline in the build-up to the Retail Sales data that will be released within the coming hour. 

Should the neckline hold, there will be prospects of an upside continuation should the data surprise as more robust than forecast. 

AUD/USD hourly chart

AUD/USD Price Analysis: Retail Sales risk ahead, bears testing 0.7270 key zone

As illustrated, the price has made a 50% mean reversion to the neckline of the formation. This would be expected to hold into the data today. 

On a break of there, however, the downside will be in play. 

AUD/USD daily chart

From a daily perspective, following the 61.8% Fibonacci retracement, the price is resisted below the 21-day moving average and bears will be looking for a downside extension of the daily bearish impulse. 

The dynamic trendline support will first need to give and on a retest, bears could well be encouraged to move in. 

AUD/USD Price Analysis: Retail Sales risk ahead, bears testing 0.7270 key zone

The -272% Fibonacci retracement level of the correction comes in near 0.7190. Thereafter, 0.7160 will be pressured at the -61.8% that has a confluence with the 20 Aug highs. 

Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.

FOLLOWME Trading Community Website: https://www.followme.com

If you like, reward to support.
avatar

Hot

No comment on record. Start new comment.