FxWirePro: Aussie fails to hold Chinese data led gains, good to short AUD/USD break below 0.7540

13 September 2016, 15:54
Eko Rediantoro
0
102

  • Upbeat Chinese data releases failed to lift sentiment across markets. Most major Asian indices slipped into the red.
     
  • Aussie failed to hold gains after the trio of upbeat China data release - retail sales, industrial production, fixed asset investment.
     
  • AUD/USD recovery stalls shy of hourly 55-EMA (0.7569), the pair has slipped lower to currently trade at 0.7541.
     
  • On the hourly charts, we see breach of trendline support at 0.7547. The pair is on track to test 1H 20-DMA support at 0.7540.
     
  • Violation there should see downside upto 0.75 levels. Further weakness to see test of 0.7490 and then 0.7435 levels.
     
  • Major support levels - 0.7540 (1H 20-DMA), 0.7509 (110-EMA), 0.7490 (Aug 31 low), 0.7435 (trendline)
     
  • Major resistance levels - 0.7555 (trendline), 0.7566 (1H 55-EMA), 0.7586 (10-DMA), 0.7596 (20-DMA)

Recommendation: Good to go short on break below 0.7540, SL: 0.7590, TP: 0.75/ 0.7490/ 0.7435


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