Technical Analysis: AUDUSD benefits from risk recovery, ignores China data, as aiming 200-DMA
AUDUSD pays less attention to softer than expected China inflation numbers for December as market's risk tone remains supported by receding odds of the US-Iran war. The AUDUSD pair is often considered as a risk barometer and hence registers its bounce after a Doji candlestick formation the previous day. With this, prices are likely heading towards a 200-DMA level of 0.6895 and a 61.8% Fibonacci retracement level of 0.6925. However, the pair's further upside could be tamed by the 0.6980 and 0.7000 numbers to the north.
On the downside, 100-DMA and 38.2% Fibonacci retracement limit immediate declines near 0.6830, if not then an ascending trend line since early-October, at 0.6800, will gain market's attention. Should the Bears manage to conquer 0.6800 mark, late-November lows surrounding 0.6750 will return to the charts.