Talking Points:
- The AUD/USD Advance Stalls Under .7524
- Intraday Support is Found Near .7457
- Looking for more trading ideas for the Aussie and the US Dollar? Read our 2017 Market Forecast
The AUD/USD has advanced for the previous four trading sessions,however, this streak is now in jeopardy as the pair approaches resistance this morning. So far the pair has failed to breach yesterday’s high despite U.S. Retail Sales figures missing expectations. Today’s release was set for an expected 0.7%, but printed at a rise of just 0.6%.
Technically the AUD/USD remains bullish for the 2017 trading year, after breaking out above a descending trend line earlier in the week. Now prices are faced with a line of resistance at .7524. This point is represented graphically as the December 14 high, and traders should be watching to see if the AUD/USD fails to breakout above this value. A rejection at present levels suggests that prices may retrace back towards the point of this week’s breakout near .7350. Alternatively, a breakout above .7524 should be seen as a strong bullish continuation signal.
(Created Using TradingView Charts)
Intraday, the AUD/USD is trading lower after trading to the R3 range resistance pivot at .7507. If prices continue to trade below this value, it suggests that the pair may retrace further to test support at .7457. This value is represented in the chart below as the S3 pivot, and is acting as support for today’s 50 pip intraday trading range.
Traders looking for a breakout should continue to monitor today’s R4 and S4 pivot. A breakout above the R4 pivot at .7529 should be seen as significant. Not only would the AUD/USD be trading at weekly highs at this point, but also be trading above the previously mentioned December 14th high. Alternatively, if prices continue to decline, bearish breakouts may begin beneath .7432. A move under .7432 would be the first attempted bearish breakout of the week, and open the pair to retrace much of this week’s gains.
(Created Using TradingView Charts)
--- Written by Walker, Analyst for DailyFX.com
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