FxWirePro: Aussie extends weakness on dismal China inflation data, good to short AUD/USD on upticks

AUD/USD chart on Trading View used for analysis

• Aussie extends weakness on dismal China inflation data and bearish technical setup on intraday charts raises scope for further weakness.
   
• China's October factory-gate inflation gauge came-in at 3.3 percent, missing estimates at 3.4 percent and down from the previous month's reading of 3.6 percent.
   
• Also, the Aussie was largely unimpressed by the Reserve Bank of Australia's (RBA) latest Statement of Monetary Policy.
   
• The RBA maintained their no-movement stance on interest rates or monetary policies in general.
   
• 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.

Support levels - 0.7195 (38.2% Fib), 0.7169 (4H 110-EMA), 0.7143 (20-DMA)

Resistance levels - 0.7283 (110-EMA), 0.73

Recommendation: Good to go short on upticks around 0.7245/55, SL: 0.7285, TP: 0.72/ 0.7170

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