AUD/USD initially slipped towards 0.9842 levels in the Asian session after data showed Chinese retail sales industrial output printed disappointing figures underlining concerns about global growth.
- However, in US session the pair has managed to rebound towards 0.6930 levels after testing support level located at 0.6835.
- Currently the pair is making an attempt to test resistance level at 0.6955.
- Further upside is expected to be limited around 0.6980 levels as the resistance level at 0.7000 should limit upside and initiate a bearish momentum towards lower levels in the short term.
- To the upside, the strong resistance can be seen at 0.7000, a break above this level would take the pair towards next resistance level at 0.7047.
- To the downside immediate support can be seen at 0.6916, a break below this level will open the door towards next level at 0.6875.
Recommendation: Go short around 0.6980, targets 0.6900, 0.6830, SL 0.7050
Resistance Levels
R1: 0.6955 (50% Retracement level)
R2: 0.7000 (Psychological levels)
R3: 0.7047 (Jan 13th high)
Support Levels
S1: 0.6916 (50% Retracement level)
S2: 0.6875 (38.2% Retracement level)
S3: 0.6828 (23.6% Retracement level)
