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 (Monday’s 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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