Inverted hammer on AUD/USD; Aussie dollar still a sell against USD

We expect personal spending in US to have finally rebounded in May (+0.8% MoM) on the back of higher auto sales and a solid increase in retail sales. This would mark the largest sequential gain in spending since March 2014.

While on the flip side the Aussie dollar slipped lower against its U.S. counterpart on yesterday as demand for the dollar remained broadly supported following upbeat U.S. data and amid ongoing Greek debt concerns.

The pair found support at 0.7683, last 15 days low and resistance at 0.7766. The downtrend of this pair remains intact.

On weekly chart inverted hammer pattern candlestick formed on 1^st June at 0.7624 and after a downtrend this has been evidenced, hence the sentiments are bearish.

The price opened and began to trade higher. The Bulls have stepped in, but could not sustain.

The current sellers knock the price back down to the lower end of the trading range.

The bears are still in control. The signal is confirmed because the price maintained higher after the inverted hammer formation.

While RSI (14) signaled bearish bias as divergence seen on price rally. Although %K line on slow stochastic happened above 20 but has not been significant as we can't jump into oversold conditions.

We anticipate although the pair shows strength in upward moves in shorter time frame but medium term perspectives this currency cross to stay either in sideways or slide further.

The dips until 0.7620 are pretty much possible. Some spikes in intraday is most likely but use every bounces to catch optimal entry points.