The Australian dollar made an attempt to recover but never went too far. What’s next? Here are the highlights of the week and an updated technical analysis for AUD/USD.
The Reserve Bank of Australian left the rates unchanged and the statement almost untouched. Nevertheless, the Aussie liked it as it stood out against the RBNZ’s dovishness. Australian retail sales came out better than expected at 0.4% and also supported the Aussie. Trade tensions slightly eased as China said it would not fire the first shot in the trade war and German Chancellor Merkel opened the door to lower car tariffs. US data was quite upbeat.
AUD/USD daily graph with support and resistance lines on it. Click to enlarge:
*All times are GMT
AUD/USD Technical Analysis
Aussie/USD started the week by climbing above the 0.7325 level mentioned last week and made its way up.
Technical lines from top to bottom:
0.7640 was a stubborn cushion in March and April. The fall below this line proved its strength. 0.7610 was the peak of an upwards move in late May.
0.7560 is the next level to watch after it was the recovery level in early May. 0.7520 was a swing low in late May.
0.7470 was an initial low in late April and it is followed by 0.7425 was the recovery level in July 2018. Further down, 0.7375 is notable.
0.7310 is the low of July 2018. 0.7250 served as a pivotal line in early 2017 and the last line to watch is 0.7160 that was the swing low back then.
I remain bearish on AUD/USD
Without any real relief on the trade front, it is hard to see any upside for the Australian Dollar.
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