- AUD/USD fails near 200-DMA on Friday's trade, slips back below 0.78 handle.
- The pair has retraced from highs of 0.7810, near one-month tops hit on Friday and is currently trading at 0.7772, up 0.06% on the day.
- Aussie is struggling to maintain bullish momentum amid waning risk appetite as conflict in Syria lingers.
- Focus now on U.S. retail sales data. A better-than-expected print could put a bid under the greenback.
- Tuesday will see the release of the minutes of the Reserve Bank of Australia meetings. Last week, RBA Governor Phillip Lowe said rates are “unlikely to move anytime soon”.
- Technical studies are biased higher and bullish divergence on RSI and Stochs keeps scope for upside.
- Fundamental factors are bearish and we see any further gains only on decisive break above 100-DMA at 0.7789.
- A series of stiff resistance in the 0.7781 to 0.7820 zone. Close above could see further bullishness.
- On the flipside, break below 21-EMA at 0.7735 negates bullish bias.
Support levels - 0.7760 (5-DMA), 0.7735 (21-EMA), 0.77
Resistance levels - 0.7781 (50-DMA), 0.7789 (100-DMA), 0.78, 0.7813 (200-DMA)
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