The Aud had another tough session on Monday in falling to a low of 0.7600 where it has closed the day, currently sitting right on the rising trend line support commencing in Jan 2106.
Strong US bond yields did much of the damage and will keep the pressure on the downside, although the focus will today turn to the Australian Q1 CPI (exp 0.5%qq, 2.0%yy, Trimmed Mean; 0.5%qq, 1.8%yy, where a soft reading would keep the pressure firmly on the downside.
1 hour/4 hour indicators: Mixed. –Turning lower.
Daily Indicators: Neutral
Weekly Indicators: Neutral
Preferred Strategy: The Aud as seen some decent damage done on Monday, in taking out several important layers of support, and currently sits right on the major rising trend line at 0.7600. Below this would then move towards a minor level at 0.7570 ahead of Fibo support at 0.7520/30 and the early December low of 0.7501.
On the topside, resistance will be seen at 0.7602 (minor) and at 0.7640/50, which if seen today would be a reasonable sell level I suspect. Above 0.7650 would allow a run to 0.7665 and to 0.7680 although this looks rather doubtful.
Selling rallies is preferred.
Sell AudUsd @ 0.7635. SL @ 0.7685, TP @ 0.7525
Economic data highlights will include:
CPI
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