#AUDUSD @ 0.69379 holds onto the previous day’s bearish technical confirmation as China data favored bears., @nehcap view: Further downside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• AUD/USD holds onto the previous day’s bearish technical confirmation as China data favored bears.
• China CPI, PPI both disappoint with softer numbers for January.
• Downside break of weekly ascending trend channel, U-turn from 200-HMA favor sellers.
• 50-HMA joins channel’s support line to challenge immediate recovery near 0.6960.

The pair currently trades last at 0.69379.

The previous day high was 0.7011 while the previous day low was 0.6921. The daily 38.2% Fib levels comes at 0.6977, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6956, expected to provide resistance.

AUD/USD retreats from intraday high surrounding 0.6950 on downbeat China inflation numbers during early Friday. That said, the softer China Consumer Price Index (CPI) and Producer Price Index (PPI) data for January helped bears to cheer the previous day’s confirmation of bearish bias, via the downside beak of the weekly bullish channel and a U-turn from the 200-Hour Moving Average (HMA).

China CPI eased to 2.1% YoY versus 2.2% market forecasts, compared to 1.8% prior, while the PPI dropped heavily to -0.8% YoY from -0.7% previous readings and -0.5% consensus.

Also read: China Consumer Price Index a touch lower than estimates, AUD eyed for reaction

It should be noted that the 50-HMA joins the aforementioned bullish channel’s lower line to restrict the immediate upside of the Aussie pair to around 0.6960. Adding strength to the downside bias are the bearish MACD signals and the downbeat RSI (14), not oversold.

Even if the quote rises past the 0.6960 hurdle, the 200-HMA near the 0.7000 round figure and an upward-sloping resistance line from Tuesday, close to 0.7015 at the latest, could challenge the AUD/USD buyers.

In a case where the AUD/USD pair remains firmer past 0.7015, the odds of witnessing a run-up toward the aforementioned channel’s top near .7050 can’t be ruled out.

Alternatively, the 0.6900 round figure and the weekly low near 0.6855 lure the AUD/USD bears as of late.

Should the Aussie pair remains weak past 0.6855, the odds of witnessing a south-ward trajectory targeting the previous monthly low near 0.6685 can’t be ruled out.

Trend: Further downside expected

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6941 at the time of writing. Pair opened at 0.6932 and is trading with a change of 0.13% % .

The pair is trading below its 20 Daily moving average @ 0.7004, above its 50 Daily moving average @ 0.6867 , above its 100 Daily moving average @ 0.668 and above its 200 Daily moving average @ 0.6807

The previous day high was 0.7011 while the previous day low was 0.6921. The daily 38.2% Fib levels comes at 0.6977, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6956, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6899, 0.6865, 0.6809
• Pivot resistance is noted at 0.6989, 0.7045, 0.7079

[/s2If]
Join Our Telegram Group