Tuesday 9 May 2017

AUD/USD posted a fresh 4-month low

Following the weak Retail Sales report , the Aussie declined and posted a fresh 4-month low at 0.7328. Meanwhile the stronger US dollar additionally fuelled the bearish sentiment.  
Technical readings on the four-hour time frame are confirming the downward trend. The 20-day SMA keeps focusing on the south. RSI has marked lower lows and is currently situated at 30 level, while stochastic has slightly corrected form the extreme overbought area, but yet is staying within the negative territory. 
The AUD/USD pair is exposed to further decline in case of closing below the daily low, so first support is seen at 0.7330 and second at 0.7290. Looking to the upside intermediate resistance is located at 0.7365 (the daily high) and higher at 0.7420 (Mondays high).  
Having in mind some important fundamental drivers, facing a couple of Federal Reserve's speakers ahead, the short term outlook remains in favor of the bears. 



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