AUD/USD analysis: bears retain control ahead of Australian consumer confidence

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7448

Australia to release its Westpac Consumer Confidence index for May.
AUD/USD next relevant support at the 0.7360 region.

The AUD/USD pair fell to a fresh 2018 year low of 0.7433, before bouncing modestly, still ending the day in the red, undermined at the beginning of the day by local retail sales that came in flat in March, down from a previous 0.6% advance, and below market's forecast of 0.3%. The pair fell sharply early Europe, following Fed's Powell comments that highlighted the divergences between both central banks spending the rest of the day consolidating losses. Australia will release its Westpac Consumer Confidence index for May during the upcoming Asian session, latest seen at -0.6%. The pair is still technically bearish according to readings in the 4 hours chart, as the price is well below a now bearish 20 SMA, while the Momentum indicator extends its decline within bearish territory and the RSI consolidates around oversold readings. A break below the mentioned daily low should expose the 0.7360 region a strong static support. Corrective upward moves, on the other hand, should meet selling interest on approaches to the 0.7500 level.

Support levels: 0.7435 0.7400 0.7365

Resistance levels: 0.7475 0.7510 0.7550

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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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