- AUD higher on the day after being hammered lower last week on expectations of further RBA easing.
- Australia CPI released on Wednesday was better than expected and markets now price out RBA rate cut at August 11th meet.
- Upside remains capped at stiff trendline resistance at 79.51, AUD/JPY pares gains to currently trade at 78.94.
- Downside in the pair finds strong support at 78.20-35 levels (21-DMA at 78.20 and rising trendline at 78.35.
- Only a break below will see further weakness, scope for test of 75.60. Bearish invalidation only above 80 levels.
- Techs are bearish, Stochs and RSI biased lower, MACD is on the verge of a bearish crossover on signal line.
Recommendation: Good to go short on rallies around 79, SL: 79.60, TP: 78.50/ 78/ 77.30
