AUDUSD falls after the release of U.S Core CPI m/m. Gains were erased after a positive data, pushing prices below 0.79. The bearish run resulted in the pair breaking below previous resistance at 0.7843 and prices are expected to continue falling towards the support at 0.7741.
Candles were observed to find resistance at the 200 EMA twice before plunging below 0.79. Bearish momentum remains strong and prices are expected to continue falling. Given that the trading week comes to an end today, profit taking in the market is expected and candles would go on a retracement. Should candles find resistance next week at 0.7843 again, it is possible to engage in another shorting entry.
Focusing on H1 chart, 20 SMA hooks below 55 EMA, indicating the start of a bearish movement. Candles now lie at Fibonacci Expansion 100.0% at 0.7784 and should candles develop signs of retracement, we can expected prices to rise towards 61.8% at 0.7833 before falling.
|Bearish in the long run||0.7670||0.7741||0.7843||0.8000||0.8057|