USD edged down in Asian trading on Monday, as investors' appetite for risk evaporated against a background of downbeat Chinese factory surveys.
- China's PMI stood at 48.3 in October, beating forecasts for a reading of 47.6, but was down for a third straight month
- The Australian dollar was briefly squeezed to a high of 0.7148 against the Greenback, from 0.7138 late on Friday
- Rally in the pair was capped at 0.7148, Stochs on 4 hourlies show bearish crossover at overbought levels, some correction likely
- AUD/USD is currently trading at 0.7138, with immediate resistance by daily Kijun at 0.7158, and support at 0.7112 (session lows)
Recommendation: Good to sell AUD/USD rallies around around 0.7145, SL: 0.7170, TP: 0.7090
Resistance Levels:
R1: 0.7158 (Daily Kijun)
R2: 0.7162 (4h 200 MA)
R3: 0.7182 (Daily Tenkan)
Support Levels:
S1: 0.7121 (cloud top)
S2: 0.7073 (Trend line support)
S3: 0.7067 (Tripple bottom Oct 6th, 29th, 30th)
