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Technical Analysis: AUDUSD bounces off a decade low on strong China CPI

China's January month CPI registered the strongest pace of increase since October 2011 on Monday. With this, the AUDUSD pair got the reason, coupled with oversold RSI, to step back from the decade low. However, a downward slopping trend line since January 16, at 0.6745 now, continues to pose an immediate challenge to the buyers. Following that, November month low near 0.6755 and December 10 bottom close to 0.6800 will be the keys for buyers to watch. However, any upside below 200-day EMA level of 0.6892 should be considered as less strong.

On the downside, a descending trend line from August 2019 around 0.6650 holds the gate for the pair's further weakness towards 0.6600. However, the pair's sustained south-run past-0.6600 might not refrain from visiting the sub-0.6500 area including multiple tops marked during early February 2009.

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