Technical Analysis: AUDUSD fails to portray Chinese PMI-led optimism


Despite witnessing upbeat activity numbers from Australia's largest customer, i.e. China, AUDUSD fails to stay strong beyond 61.8% Fibonacci retracement (Fibo.) of October month upside. The pair seems to decline towards the key Fibo. level of 0.6765 whereas the recent low near 0.6750 and a downward sloping trend line since October 24, at 0.6735 can question bears afterward. In a case prices slip beneath 0.6735, 0.6710 and 0.6670 could lure sellers.

In order to lure the buyers, the quote needs to cross three-week-old falling trend line, around 0.6795 now, which in turn could recall November 19 and November 11 highs close to 0.6830 and 0.6865. If at all bulls manage to dominate beyond 0.6865, the October month top close to 0.6930 will be their favorite.

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