FxWirePro: AUD/USD extends gains above 55-EMA, Aussie ignores soft retail sales data

AUD/USD chart on Trading View used for analysis

• AUD/USD extends upside, trades 0.45% higher at 0.7238 at the time of writing.
   
• The pair is extending gains of the previous session after upbeat PPI data. 
   
• Data released earlier today showed Australia September retail report was on the soft side.
   
• Monthly retail sales rose 0.2%, slightly lower than the consensus forecast of 0.3%.
   
• On the other side, Australia's quarterly Producer Price Index clocked in at 0.8%, beating the 0.2% forecast and over the previous quarter's 0.3%.
   
• Aussie shrugged off poor trade data to cling on to gains. Scope for further upside.
   
• Technical studies are biased higher. Breakout above daily cloud will see next major resistance at 23.6% Fib at 0.7284.
   
• On the flipside, retrace below 55-EMA to see weakness till 5-DMA at 0.7136.

Support levels - 0.7184 (55-EMA), 0.7136 (5-DMA), 0.71 (20-DMA)

Resistance levels - 0.7250 (channel top), 0.7287 (110-EMA), 0.73

Recommendation: Stay long on channel breakout, target 0.7285/ 0.73/ 0.7380

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.