General overview: The pair find major pullback from the bears towards the downside pair in the market. The pair is making the downside momentum in the market. China’s Retail Sales drop to 17.7%, Industrial Production eases to 9.8% in April. Mixed risk catalysts, trade tussles with China add to the downside, AUD/USD refreshes intraday low as China flashes weak economics. The pair takes its movement towards upside rise in the market. The pair makes its flow towards the high volatility in the market. The pair’s upside could also be termed as a consolidation to Friday’s heavy run-up, earlier backed by the risk-on mood, amid mixed sentiment. The pair breaks its upside resistance level and move towards more north direction in the market. The pair completes its recovery level we can expect rise in market.
Technical analysis: From the technical point of view we can say that market makes the bearish side in the market. The pair makes the negative side in the market and creates the potential bullishness in the chart. Deep majority the positive factors, the AUD/USD pair, so breakdown. The pair is below the major and minor EMA and SMA lines and formed the potential buy sign towards the market. Odds are also favors of the bulls in market. On the 4 hourly charts market is waiting for the 0.7800 level to break to gain more buying momentum in the market. The RSI is also above the 50 level and macd is also below above level in the market. Traders can do buy on dips level 0.7777.
Trade idea: Our traders will move towards the buy side in the market entry will be 0.7777 target will be 0.7840 -0.7890 stop loss will be 0.7700.
