AUD/USD: poised for a bullish breakout

AUD/USD Current price: 0.7896

  • Australian Consumer Confidence improved, Chinese data also helped.
  • AUD/USD struggles with major Fibonacci resistance around 0.7890.

The Aussie is among the best performers this Wednesday, pressuring the 0.7890 region against the greenback. Chinese data released overnight was mixed, with Retail Sales growing below market's expectations in January, up 9.7% vs. market's forecast of 9.8%, although above the previous 9.4%. Industrial Production, on the other hand,  grew 7.2 % YoY, the fastest pace of growth since June 2017, while urban fixed-asset investment, rose 7.9%, beating market's expectations. Australian consumer sentiment, according to Westpac, improved modestly in March, up to 0.2% from a previous -2.3%. Despite Asian shares stay in the red, European ones trade positively, keeping the pair near its daily highs ahead of the release of US Retail Sales.

Technically, the short-term picture is positive for the pair, given that in the 4 hours chart the pair met buying interest around a bullish 20 SMA, while the RSI indicator aims north, currently around 64. The Momentum, however, lags, pretty much neutral, as the pair remains below its previous weekly high, and unable to surpass a key Fibonacci resistance, the 38.2% retracement of the December/January rally. The pair would need now to break above the 0.7900 figure with some strong momentum, with scope then to advance up to 0.7980, the next Fibonacci resistance and where the pair topped mid-February.

Support levels: 0.7860 0.7820 0.7770  

Resistance levels: 0.7900 0.7940 0.7980

View Live Chart for the AUD/USD

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