AUDUSD Suffered Heavy Losses– 0.7660-80 is a Reaction Area
Aayush Jindal
Key Highlights
Australian Dollar dived versus the US Dollar, as AUDUSD sellers have been aggressive lately.
There is a major support at 0.7660-80 where buyers might fight to protect more losses.
Earlier today, the Japanese Retail Trade released by the Ministry of Economy, Trade and Industry registered an increase of 5% in April 2015.
AUDUSD – Technical AnalysisThe AUDUSD pair recently suffered heavy losses after sellers managed to break the 0.7800 support area. On the daily timeframe, the 100 simple moving average was breached, which cleared the way for losses. There is a minor bullish trend line on the daily chart, which might act as a support to the AUDUSD pair in the near term.Moreover, the 76.4% Fib retracement level of the last wave from the 0.7532 low to 0.8161 high is also around the same trend line. So, there is a chance of a reaction around 0.7660-80 area, and buyers might try hard to protect more declines in AUDUSD.If buyers fail to defend losses, then a break below the highlighted trend line could set that path for a rested of the previous swing low of 0.7530. On the upside, the 200-day SMA may perhaps act as a barrier moving ahead. There is one more bearish sign, as the daily RSI has moved below the 50 level, suggesting that the AUDUSD pair is under bearish pressure.Japanese Retail TradeEarlier during the Asian session, the Japanese Retail Trade, which captures the aggregate sales made through a business location with the principal activity is the sale of merchandise was released by the Ministry of Economy, Trade and Industry. The market was expecting the Japanese Retail Trade to increase by 5.4% in April 2015, compared to the same month a year ago. However, the outcome was a bit lower, as there was a rise of 5%, but it was a lot higher compared with the previous decline of 9.7%.When we consider the monthly change, then the Japanese Retail Trade rose by 0.4% in April 2015, which was also on the higher side as the last one was a 1.9% decline.There was no help to the Japanese Yen, as it continued to decline. The USDJPY pair tested 124.00 level and looks set for more upsides.
If buyers fail to defend losses, then a break below the highlighted trend line could set that path for a rested of the previous swing low of 0.7530. On the upside, the 200-day SMA may perhaps act as a barrier moving ahead. There is one more bearish sign, as the daily RSI has moved below the 50 level, suggesting that the AUDUSD pair is under bearish pressure.Japanese Retail TradeEarlier during the Asian session, the Japanese Retail Trade, which captures the aggregate sales made through a business location with the principal activity is the sale of merchandise was released by the Ministry of Economy, Trade and Industry. The market was expecting the Japanese Retail Trade to increase by 5.4% in April 2015, compared to the same month a year ago. However, the outcome was a bit lower, as there was a rise of 5%, but it was a lot higher compared with the previous decline of 9.7%.When we consider the monthly change, then the Japanese Retail Trade rose by 0.4% in April 2015, which was also on the higher side as the last one was a 1.9% decline.There was no help to the Japanese Yen, as it continued to decline. The USDJPY pair tested 124.00 level and looks set for more upsides.
If buyers fail to defend losses, then a break below the highlighted trend line could set that path for a rested of the previous swing low of 0.7530. On the upside, the 200-day SMA may perhaps act as a barrier moving ahead. There is one more bearish sign, as the daily RSI has moved below the 50 level, suggesting that the AUDUSD pair is under bearish pressure.Japanese Retail TradeEarlier during the Asian session, the Japanese Retail Trade, which captures the aggregate sales made through a business location with the principal activity is the sale of merchandise was released by the Ministry of Economy, Trade and Industry. The market was expecting the Japanese Retail Trade to increase by 5.4% in April 2015, compared to the same month a year ago. However, the outcome was a bit lower, as there was a rise of 5%, but it was a lot higher compared with the previous decline of 9.7%.When we consider the monthly change, then the Japanese Retail Trade rose by 0.4% in April 2015, which was also on the higher side as the last one was a 1.9% decline.There was no help to the Japanese Yen, as it continued to decline. The USDJPY pair tested 124.00 level and looks set for more upsides.