- AUD/USD slips lower from session highs at 0.7570 after weak China Caixin PMI data.
- China's Nov Caixin manufacturing PMI came in at 50.8 in November vs. 50.9 expected and 51.00 last.
- The pair is extending grind along downward biased 5-DMA, eyes trendline at 0.7535.
- Technical studies are bearish on intraday charts, RSI and Stochs have turned south. Weekly charts also support bearish bias.
- However, bullish divergence on RSI and Stochs keeps scope for upside in the pair. Only violation at major support at 0.7535 there could see further weakness.
- We see bearish invalidation on breakout at 20-DMA, scope then for test of 200-DMA at 0.7693.
- Focus on US ISM manufacturing PMI reading and comment from Fed officials for further direction in the pair.
Support levels - 0.7535 (double bottom June 22 and Nov 17), 0.7528 (61.8% Fib retrace of 0.7160 to 0.81250 rally), 0.75
Resistance levels - 0.7578 (5-DMA), 0.7610 (20-DMA), 0.7691 (200-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-fails-at-20-DMA-slips-below-5-DMA-at-07609-good-to-short-rallies-1031440) is progressing well.
Recommendation: Bias lower, stay short.
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -16.4134 (Neutral), while Hourly USD Spot Index was at 59.4147 (Neutral) at 0530 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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