Sales and a Strong Dollar....

10 Mei 2017

With recent and continued misses for AUD sales expectations, sold off as April sales data missed expectations and price breached the 83.50 marker. This number is key to further price action as it is showing that there should be more bearish and weakening attitudes towards growth and inflation control. The spot stalled overnight due to heavier selling pressure as the negative reaction from the April sales report built and will continue to build. AUDUSD continues to track and follow the 2016 range as it seems to have finally found stable support from the massive fall starting from the 2012 high. It's currently in a rising wedge correction phase which may follow the EW i have traced but is highly unlikely. It has major sliding resistances from previous years to pass along with the .382 fib that has been a rather strong resistance price point since the middle of 2015. Supports lie at the bottom of the rising wedge correctional triangle and the 23% fib. I feel this will continue to remain weak for a while and see possible short entry after final rejection at resistance confluence and top of rising correctional wedge.