• AUD/USD bulls eye a significant correction towards trendline resistance.
• Bears will be lurking in the mist and a downside continuation could be on the cards. 

AUD/USD was correcting on Thursday from the lows despite a firmer US Dollar and the current tracked the stock market and leaned against domestic data that showed Retail Sales rose a surprisingly strong 0.7% in May, adding marginally to the case for a further rise in interest rates from the Reserve Bank of Australia (RBA). Other data showed job vacancies had eased again, but were still at levels that pointed to a very tight labour market.

Technically, however, there is resistance ahead in a US dollar firm environment and the following illustrate the prospects of a downside continuation:

AUD/USD daily chart

AUD/USD bulls are trying to correct the recent sell-off and eye a move to test the trendline resistance. There are prospects of a deeper correction but bears are lurking with the price below the prior lows that are acting as meanwhile resistance. A break of 0.6650, however, opens risk towards 0.6670. 

AUD/USD H4 chart

The 4-hour chart has the 78.65 Fibonacci marked in the 0.6670s which could be a target. The bears will be lurking in the resistance area, however and will be keen to guard trendline resistance.