Current trend

The AUD/USD pair is correcting at 0.6668 with the support of macroeconomic statistics from Australia.

Thus, the April retail sales increased by 0.1% after a decline of 0.4% in March, increasing the likelihood that Reserve Bank of Australia (RBA) officials will keep peak interest rates for a long time. There was a slight increase in household goods (0.7%), department stores (0.1%) and other retail trade (1.6%), while a decline was recorded in the clothing and footwear sector (–0.7%). For food products, an increase in the section of restaurants and takeaway food (0.3%) was observed, but the value for the food sector decreased by 0.5%: households remain under pressure from high inflation, which does not allow citizens to increase spending even on essential goods.

The American dollar is trading at 104.30 in USDX. Yesterday's trading was closed on the occasion of Remembrance Day but today, the market will receive new macroeconomic statistics: at 15:00 (GMT 2), the housing price index is due, which, according to preliminary estimates, will increase by 0.5% in March, below 1.2% a month earlier, and at 16:00 (GMT 2), experts will pay attention to the Conference Board consumer confidence index, which may decrease from 97.0 points to 96.0 points, putting pressure on the national currency.

Support and resistance

On the daily chart, the trading instrument is correcting, holding near the resistance line of the Expanding formation pattern with dynamic boundaries of 0.6740–0.6320.

Technical indicators are restoring a buy signal after a correction: fast EMA on the Alligator indicator are above the signal line, keeping the fluctuation range wide, and the AO histogram is forming corrective bars in the buy zone.

Resistance levels: 0.6690, 0.6790.

Support levels: 0.6630, 0.6510.

Trading tips

Long positions may be opened after the price rises and consolidates above 0.6690, with the target at 0.6790. Stop loss – 0.6650. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 0.6630, with the target at 0.6510. Stop loss – 0.6700.