AUD/USD analysis: about to challenge key multi-week low

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7796

The AUD/USD pair fell to end the day a few pips below the 0.7800 level, not far from the multi-week low set this past Tuesday at 0.7785. The Aussie came under selling pressure at the beginning of the day, after Australian retail sales came in below expected, falling by 0.6% in August, against market's forecast of a 0.3% gain. Also, July’s flat result was revised down to -0.2% . The year-on year reading slowed to 2.1%, the weakest pace of growth since June 2013. The contraction in sales offset a positive trade balance outcome, as the surplus was larger-than-expected, up to 989M in August, while previous month's result was upwardly revised to 808M, with the advance attributed to rising exports of iron ore to China. The pair is biased lower according to technical readings in the 4 hours chart, as the pair extended lower after breaking below its 20 SMA, now gaining downward strength around 0.7830, while technical indicators head south within negative territory, with a strong downward momentum. A break below the mentioned weekly low should fuel the decline, although a relevant support stands not far below, at 0.7749, March 21st high.

Support levels: 0.7785 0.7750 0.7710

Resistance levels: 0.7830 0.7865 0.7900

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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