The Australian Dollar (AUD) inched higher against the U.S. Dollar (USD) on Friday (October 15, 2021), increasing the price of the AUDUSD pair to more than 0.7400, ahead of the release of the U.S. Retail Sales data.
Technical analysis
As of this writing, the AUDUSD pair strengthens around 0.7425. Should the price increase further, the pair might find some resistance near the listed price levels.
Short-Term resistance
0.7440 – the major horizontal resistance.
0.7518 – the 61.8% Fib level resistance.
0.7547- the upper trendline arm.
Daily Chart Source- MetaTrader4
On the downside, the price of the pair might find some support near the listed price levels.
Short-Term support
0.7371 – the trendline support.
0.7262 – the Fibonacci retracement (23.6%).
0.7226 – the low of October 06, 2021.
US Retail Sales news
The U.S. Census Bureau is scheduled to release U.S. Retail Sales data Today (October 15, 2021). As per the average economists forecast the U.S. retail sales registered a reading of -0.2% in September, compared to 0.7%, in the month before.
The U.S. Retail Sales data reflects the total retail sales receipts over a given period. The change in the percentage of monthly sales indicates an increase or decrease in retail sales volume.
Not to mention, U.S. Retail Sales data is a major economic indicator since it helps economists forecast consumer spending patterns in the coming days. Generally speaking, a high reading strengthens the U.S. Dollar and suggest a bearish trend for the AUDUSD pair and vice versa.
Conclusion
Considering the price movements of the pair over the past few days, it may be a better option in the short term if the AUDUSD pair was bought at around 0.7400. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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