AUD/USD Rejected By Support!

AUD/USD Rejected By Support!

AUD/USD was into a corrective phase in the short term as the DXY increased a little. The pair has decreased as much as 0.7688 level where it has found strong support. Actually, the price has reached a strong support area, so a bounce-back is natural.

USD depreciates again as the US Dollar Index plunges ahead of the US data. The Retail Sales are expected to increase by 1.0% in May versus 9.8% in April, while the Core Retail Sales could register only a 0.5% growth compared to 8.4% growth in the last reporting period.

Moreover, the Industrial Production, Capacity Utilization Rate, and the Prelim UoM Consumer Sentiment could shake the markets as well. The volatility could be high around these data, so you should be very careful if you are not an experienced trader.

AUD/USD H4 Chart Technical Analysis!

AUD/USD dropped after registering a false breakout above the ascending pitchfork’s median line (ml). Now it has dropped to retest the lower median line (lml) which is seen as strong support.

The 0.7705 level is seen as static support as well, so the rejection from this area could signal a new swing higher. Some poor US data today should boost the pair as the DXY will be expected to drop further.

Conclusion!

The false breakdown with great separation below the lower median line (lml) indicates a bullish momentum towards the 0.7820 resistance area.

 

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.