Aussie bulls dented on the back of poor Capex data which came in well below expectations, leading to a free fall over 30 pips in AUD/USD.
- Given the disappointing Australian capex in Q3, there is likely to be downside revisions in the days to come, which should be a negative input for the Australian Dollar.
- Price action has dipped back into the cloud, Daily Stochs show a bearish crossover at overbought levels, long upper wick forms on the daily candle
- Major resistance at 0.7250 had briefly given way, pair set a new high but had edged lower and now trades at 0.7234, support on the filpside lies at 0.7224 (cloud top)
Recommendation: Good to sell rallies around 0.7250, SL: 0.73, TP: 0.7185
Resistance Levels:
R1: 0.7250 (Trendline)
R2: 0.7283 (Session high Nov 25)
R3: 0.7297 (Daily High Oct 23)
Support Levels:
S1: 0.7227 (Nov 25 low)
S2: 0.7224 (cloud top)
S3: 0.7167 (10 DMA)
