FxWirePro: AUD/USD holds 21-EMA support, 'Death Cross' on hourly charts keeps scope for downside

AUD/USD chart - Trading View 

• AUD/USD is trading 0.15% lower on the day at 0.7136 at 0350 GMT, intraday bias bearish.
   
• The pair is extending weakness after rejection at 200-DMA resistance in last week's trade.
   
• Australian markets remain closed today on account of Easter Monday holiday, focus shall be on Wednesday's CPI data for further impetus.
   
• Analysts at Australia and New Zealand Banking Group (ANZ) expect Australian headline and core CPIs to arrive softer in the first quarter.
   
• Poor inflation data could strengthen RBA's rate cut call for May, weighing on the Aussie.
   
• Technical indicators are turning bearish on the daily charts. Major trend has always been bearish.
   
• Rejection at 200-DMA, turn in RSI, rollover of Stochs from overbought, 'Death Cross' formation on the hourly charts add to the bearish bias.
   
• The pair is currently holding support at 21-EMA at 0.7134. Break below will see weakness till 0.7190 (trendline).
   
• Violation at trendline support and breach below cloud will raise scope for weakness till 61.8% Fib at 0.6955.
   
• On the upside, immediate resistance lies at 110-EMA at 0.7151. Break out at 200-DMA invalidates bearish bias. 

Recommendation: Stay short on break below 21-EMA (0.7134), SL: 0.7165, TP: 0.7090/ 0.7020

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