- AUD/USD edges higher to hover around 5-DMA at 0.7970, Aussie pares losses on upbeat retail sales data, bias lower.
- The RBA trimmed GDP forecasts for 2017 and cautioned markets about the negative effect of the strong Aussie dollar.
- Upbeat retail sales figure is helping Aussie, AUD/USD up 0.23% on the day.
- Oscillators have shown a rollover from overbought levels and MACD shows bearish crossover on signal line.
- A bearish price RSI divergence was confirmed earlier this week, which keeps bias lower.
- Bullish invalidation only on break above weekly 200-SMA at 0.8000.
Support levels - 0.7902 (23.6% Fib retrace of 0.73728 to 0.80656 rally), 0.7864 (20-DMA), 0.7801 (38.2% Fib)
Resistance levels - 0.7969 (5-DMA), 0.8000 (weekly 200-SMA), 0.81
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-slips-below-5-DMA-Aussie-ignores-strong-Australia-housing-data-bias-lower-stay-short-833063) is progressing well.
Recommendation: Hold for targets.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 8.34991 (Neutral), while Hourly USD Spot Index was at 1.29849 (Neutral) at 0900 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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