The Australian Dollar is edging lower early Tuesday as traders react to an unexpected jump in Chinese consumer inflation and the lack of fresh news over U.S.-China trade relations as another round of tariffs by the United States on Chinese exports looms.
Earlier today, Reuters reported China’s consumer inflation climbed to nearly eight-year peaks in November as pork prices doubled, but factory-gate prices remained in the red, adding to uncertainty over whether the manufacturing sector is bottoming out as trade risks persist.
At 08:25 GMT, the AUD/USD is trading .6825, down 0.0001 or -0.01%.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through .6930 will change the main trend to up. A move through .6754 will signal a resumption of the downtrend.
The minor trend is also down. A trade through .6862 will change the minor trend to up. This will also shift momentum to the upside. A move through .6813 will signal a resumption of the downtrend.
The main range is .6671 to .6930. Its retracement zone at .6800 to .6770 is the primary downside target and support area.
On the upside, the major resistance zone is .6877 to .6925.
Daily Technical Forecast
There is no key pivot area today. The price action will be determined by momentum.
If the downside momentum continues then look for the selling to possibly extend into the 50% level at .6800, followed closely by the uptrending Gann angle at .6794.
Crossing to the weak side of the downtrending Gann angle at .6790 will indicate the selling is getting stronger. This could trigger a further break into the Fibonacci level at .6770.
If buyers can stop today’s early weakness then look for a potential rally into a resistance cluster formed by a minor top at .6857, a downtrending Gann angle at .6860 and another minor top at .6862.
Overtaking the resistance cluster will indicate the buying is getting stronger. This could trigger a further rally into the main 50% level at .6877.
This article was originally posted on FX Empire
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