FxWirePro: AUD/USD extends weakness, unexpected decline in Australia's Trade Balance weighs

AUD/USD chart on Trading View used for analysis

• AUD/USD eyes 0.72 handle as the pair is extending declines after unexpected miss in Australia's Trade Balance.
   
• Australia’s trade surplus narrowed to A$2.3 billion in October from A$2.9 billion the previous month.
   
• Exports remained static but imports surged, rose 3% following -1% in September while exports were steady at +1%.
   
• Traders largely ignored positive retail sales which were up 0.3% m/m in Oct versus a +0.2% forecast and accelerating from the +0.1% in Sept.
   
• The pair has slipped below all major moving averages. Is on track to test next major support at cloud (0.72).
   
• Technical indicators have turned bearish. Stochs and RSI sharply lower. MACD is showing a bearish crossover on signal line.
   
• Break into cloud will see further weakness. Retrace above 110-EMA could see some upside.

Support levels - 0.72 (cloud), 0.7163 (61.8% Fib), 0.71 (78.6% Fib)

Resistance levels - 0.7251 (38.2% Fib), 0.7278 (110-EMA), 0.7298 (5-DMA)

Recommendation: Good to go short on rallies, SL: 0.7280, TP: 0.72/ 0.7165/ 0.71

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.