The Australian Dollar (AUD) inched lower against the US Dollar (USD) on Monday, dragging the price of AUDUSD to less than 0.7650 amid some key economic news releases. The technical bias shall remain bullish because of a higher high in the ongoing upside rally.

Technical Analysis

As of this writing, the pair is being traded around 0.7643. A hurdle can be noted near 0.7650, the psychological number ahead of 0.7726, the swing high of the last major upside rally as demonstrated in the give below daily chart. A break and daily closing above the 0.7726 resistance shall incite renewed buying interest, validating a move towards the 0.8000 resistance zone in long term.

On the downside, a support can be noted around 0.7493, a short term horizontal support ahead of 0.7468, the confluence of 50% fib level as well as horizontal support area and then 0.7387, the trendline support area followed by 0.7159, the swing low of the last major downside move. The technical bias shall remain bullish as long as long as the 0.7159 support area is intact.

Aussie Retail Sales News

Australian retail sales flagged in the most crucial month of the year, with news of a dip in turnover marrying with several weak updates from the sector in recent months. Official data from the Australian Bureau of Statistics revealed a seasonally adjusted 0.1 per cent fall in sales for December, as against market expectations for a rise of 0.3 per cent.It represented the first negative print in a year and just the third since the middle of 2013.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.