AUD/USD: headed towards the 2016-2017 support line at 0.7294?

Currently, AUD/USD is trading at 0.7380, up 0.02% on the day, having posted a daily high at 0.7385 and low at 0.7369.

AUD/USD is consolidating between 0.7350/80 having made a minor recovery from 0.7330. AUD/USD dropped this week from 0.7425 area with metal prices weighing and a generally stronger dollar. However, the greenback was less dominant overnight in a US session where both stocks and yields failed to impress, despite very impressive second tier data. Today's calendar holds US retail sales and CPI as the next major events. 

• Forex today: an uneventful session although dollar supported by PPI ahead of CPI tomorrow

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the price has managed to recover above a still bearish 20 SMA. "The RSI indicator lacks directional strength around 48 and the Momentum indicator turned south after entering positive territory, this last indicating limited buying interest. The risk remains towards the downside, although the possibility of an upward corrective move can't be disregarded particularly on an advance beyond 0.7400."

On a wider view, analysts at Commerzbank argue that it is headed to the base of the range offered by the 2016-2017 support line at 0.7294. "This is expected to eventually break down targeting initially 0.7161 December 2016 low then 0.7013 the 2001-2017 support line."