Aussie extends weakness on dismal China inflation data and bearish technical setup on intraday charts raises scope for further weakness.
We see the major has formed a bearish divergence on RSI and Stochs on the 4-hourly charts.
The pair has slipped below 20-SMA on the 4H chart and has tested 23.6% Fib at 0.7236.
Stochs and RSI are sharply lower and we see bearish MACD line crossover on signal line which raise scope for further weakness.
The major holds support at 1H 110-EMA at 0.7240.
Stay short on break below, target 0.72/ 0.7170.
Submit Your Comments: