11, January 2017

AUD/USD (a 4-hour chart)

General overview

The Australian dollar weakened on Tuesday amid downbeat Retail Sales release. Moreover, disappointing releases of Chinese CPI weighed on the Aussie.

Current situation

An attempt to advance beyond 0.7350 failed on Tuesday. Buyers climbed up to 0.7385 where the pair came across fresh offers and dropped to 0.7350. After testing the level sellers continued battling with it trying to push the price lower. The 4 hours chart showed that the price tested the 200-EMA in the early trades. The 200-EMA slowed down bulls’ advance being a tough nut to crack acting as a resistance for the spot. The 100 and the 200-EMAs were neutral while the 50-EMA kept pointing higher in the mentioned timeframe. The resistance is highlighted at 0.7400, the support comes in at 0.7350.

MACD decreased which indicates the buyers’ positions weakening. The RSI indicator consolidated within undervalued readings.

Trading recommendations

The bearish trend remained intact. If the price fixates below the support 0.7350, it may continue the downward trend in the short term. The potential sellers’ targets are 0.7300 and 0.7250.