AUDUSD finds support at 0.7600 with candles now drawing near the resistance at 0.7700. The release of a weaker-than-expected CPI y/y data from China resisted bullish movements and we may see prices continue to fall. Should candles today fail to close above 0.7700, it is possible to engage in a shorting position as candles are expected to re-test 0.7600 again.
Observing the H4 chart, recent candles started to exhibit signs of resistances after long shadows were formed but candles repeatedly failed to close above the 55 EMA. Additionally, previous candle closed as a doji, indicating a possible resistance at 0.7700. For slightly aggressive traders, it is possible to engage in a shorting position now to obtain a good risk to reward ratio but any closing of candles above 0.7700 will indicate a continuation of upward movements.
Focusing on the hourly chart, candles were observed to be resisted at 0.7700 after candles failed to close above twice. For traders who are already in a shorting position, do take note 0.7676 continues to pose as a possible support level where we may see prices continue to rise.
|Bearish if candles close below 0.77||0.7500||0.7541||0.7600||0.7700||0.7800||0.7879|