AUD/USD: bulls safe ahead of China – FXStreet

By FXStreet FXStreet (Guatemala) – Valeria Bednarik, chief analyst at FXStreet explained that the Aussie advanced some at the beginning of the day, but once again failed to sustain gains above the 0.7000 level against the greenback, ending the day pretty much unchanged and with long shadows both sides of the board in its daily doji.

Key Quotes:

“Nevertheless, the AUD/USD pair maintains a bearish perspective in the daily chart, as the RSI indicator has barely corrected extreme oversold readings before turning flat, while the Momentum indicator heads south far below the 100 level. During the upcoming Asian session, China will release its December trade balance figures, with both, exports and imports expected to have declined even further. Should the data disappoint, the Aussie risks further declines, with a break below 0.6900 becoming more likely.

In the meantime, the 4 hours chart shows that the price is unable to establish itself above its 20 SMA, while the Momentum indicator heads higher around its 100 level and the RSI indicator holds flat around 43, all of which should limit slides ahead of the Chinese’s data release.”
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Source:: FX Street