Aussie looking bullish ahead of trade data...
AUD/USD:
Dwelling approvals out of Australia Monday fell a further 8.4% in December following a 9.8% drop in November and coming in much weaker than the consensus forecast of a 2.1% lift.
Weighed on by local data and a strengthening US dollar, the AUD/USD carved out its second consecutive loss from an overall peak of 0.7295 printed Thursday.
In terms of structure on the H4 page, resistance marked in yellow at 0.73/0.7274 remains in sight and has thus far done a superb job in holding price action lower (comprised of a round number at 0.73, a 161.8% Fibonacci ext. point at 0.7283 and a resistance level at 0.7274). To the downside from here, demand at 0.7180-0.7204 is seen close by, which happens to hold within it the 0.72 handle and merges nearby a trend line resistance-turned support (etched from the high 0.7235).
Against the backdrop of intraday flow, weekly price is seen hovering above its 2017 yearly opening level at 0.7199 following last week’s advance. With sellers likely emptied from this neighbourhood, a retest of 0.7199 as support has resistance at 0.7371 in the crosshairs this week.
Recent buying, as is evident from the daily timeframe, destroyed supply at 0.7246-0.7178 Wednesday and later retested the zone as a support area Friday. Assuming buyers hold ground here, upside momentum towards Quasimodo resistance at 0.7338 might be observed.
Areas of consideration:
Having seen all three timeframes emphasise support today, a long from the H4 demand mentioned above at 0.7180-0.7204 is worthy of consideration. Plotted within the lower limits of the current daily support area and sporting a reasonably strong line of H4 convergence as well as weekly support essentially representing the 0.72 handle, entering long from the top of the H4 demand, with stop-loss orders positioned beneath the daily support area’s base at 0.7178 may be an approach worth exploring today, targeting the H4 resistance area marked in yellow at 0.73/0.7274 as an initial upside target.
Today’s data points: Australian Retail Sales m/m; Australian Trade Balance; RBA Rate Statement and Cash Rate Decision; US ISM Non-Manufacturing PMI.
Dwelling approvals out of Australia Monday fell a further 8.4% in December following a 9.8% drop in November and coming in much weaker than the consensus forecast of a 2.1% lift.
Weighed on by local data and a strengthening US dollar, the AUD/USD carved out its second consecutive loss from an overall peak of 0.7295 printed Thursday.
In terms of structure on the H4 page, resistance marked in yellow at 0.73/0.7274 remains in sight and has thus far done a superb job in holding price action lower (comprised of a round number at 0.73, a 161.8% Fibonacci ext. point at 0.7283 and a resistance level at 0.7274). To the downside from here, demand at 0.7180-0.7204 is seen close by, which happens to hold within it the 0.72 handle and merges nearby a trend line resistance-turned support (etched from the high 0.7235).
Against the backdrop of intraday flow, weekly price is seen hovering above its 2017 yearly opening level at 0.7199 following last week’s advance. With sellers likely emptied from this neighbourhood, a retest of 0.7199 as support has resistance at 0.7371 in the crosshairs this week.
Recent buying, as is evident from the daily timeframe, destroyed supply at 0.7246-0.7178 Wednesday and later retested the zone as a support area Friday. Assuming buyers hold ground here, upside momentum towards Quasimodo resistance at 0.7338 might be observed.
Areas of consideration:
Having seen all three timeframes emphasise support today, a long from the H4 demand mentioned above at 0.7180-0.7204 is worthy of consideration. Plotted within the lower limits of the current daily support area and sporting a reasonably strong line of H4 convergence as well as weekly support essentially representing the 0.72 handle, entering long from the top of the H4 demand, with stop-loss orders positioned beneath the daily support area’s base at 0.7178 may be an approach worth exploring today, targeting the H4 resistance area marked in yellow at 0.73/0.7274 as an initial upside target.
Today’s data points: Australian Retail Sales m/m; Australian Trade Balance; RBA Rate Statement and Cash Rate Decision; US ISM Non-Manufacturing PMI.
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