FxWirePro: AUD/USD Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.14% higher on the day at 0.7105 at around 05:50 GMT

Previous Week's High/ Low: 0.7250/ 0.7054

Previous Session's High/ Low: 0.7147/ 0.7045

Fundamental Overview:

Trading is likely to remain muted ahead of the Fed’s monetary policy meeting. Pre-Fed trading lul likely to keep upside limited.

Market sentiment remains mildly positive amid expectations of no unexpected negatives from the Fed.

Australia’s Retail Sales for March rose past 0.6% market consensus to 1.6%, versus 1.8% prior. 

Australia’s S&P Global Services and Composite PMIs eased below the previous readouts of 56.2 and 56.6 to 55.9 and 56.1 respectively.

Technical Analysis:

- AUD/USD is extending gains for the second straight session

- Price action is above 5-DMA and is just shy of 200H MA

- RSI confirms bullish rollover from oversold levels, but momentum is bearish

- GMMA indicator shows major and minor trend are bearish

Major Support and Resistance Levels:

Support - 0.7080 (5-DMA), Resistance - 0.7143 (200H MA)

Summary: AUD/USD upside likely to be limited. Major trend remains bearish. Retrace above 200-DMA required for bearish invalidation.