AUD/USD Technicals – Retail Sales helping 1.051-1.052 resistance band

15 Minutes Chart

Aussie Retail Sales came in at -0.1%, surprising analysts who were calling for a 0.3% gain. Price fell back below 1.05 in quick succession but has since recovered slightly. Looking at just the past 24 hours worth of candles, it does not seem that this news announcement has broken current short-term bullish momentum as it was unable to maintain price below interim support of 1.049. Looking purely from 15:00 onwards, price has carved out higher highs and higher lows, and the dip within the short while does not appear to change the overall shape of the graph.

Hourly Chart

From a longer perspective, AUD/USD has majority of candles firmly between 1.048 – 1.051. Of concern is the failure to test the previous swing high formed on 3rd Jan (GMT +8), implying that bulls have yet to garner enough momentum for any meaningful breakout. 1.051 – 1.052 remain the goal to beat for bulls for any strong breakthrough. Keep a look out around this price levels for any show of strength or potential reversal possibilities. Downside movement should meet support between Weekly Pivot just below 1.046 – 1.048, while further support can be found along S1 (yellow line) which is close to the opening levels of 2013.

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