FxWirePro: Aussie gains despite soft retail sales figures, finds support at 10-DMA
The Australian dollar rallied, hovering towards a 2-week peak hit earlier in the week as the greenback tumbled to multi-month lows. Earlier in the day the major eased to 0.6585 on data that showed Australia's January mon…
The Australian dollar rallied, hovering towards a 2-week peak hit earlier in the week as the greenback tumbled to multi-month lows.
Earlier in the day the major eased to 0.6585 on data that showed Australia's January month retail sales slipped 0.3 percent, below 0.0 percent forecast.
The Aussie was trading 0.4 percent up at 0.6640, having hit a high of 0.6645 on Tuesday, its highest since Feb. 20.
Technical indicators are turning bullish: RSI point north, Stochs are biased higher and MACD supports upside.
The pair broke above minor resistance 21-EMA but struggles to extend gains.
Immediate resistance is located at 0.6648, a break above could take it near 0.6665.
On the downside, support is seen at 0.6580 (10-DMA), a break below could drag it till 0.6553.
Recommendation: Good to buy on dips around 0.6616, with stop loss of 0.6604, and target price of 0.6648.
