Technical Analysis: AUDUSD stays depressed inside ascending triangle after Aussie/China data
Despite recently bouncing off 0.6430, AUDUSD remains pressured inside a short-term ascending triangle formation on Tuesday. Downbeat performance of Chinese inflation and Aussie Business Conditions/Confidence data joins a broad risk-off wave to determine the Aussie pair's weakness. As a result, sellers can look for the downside break of the said triangle's support, currently around 0.6405, for fresh entries. Even so, 200-bar SMA near 0.6380/75 can raise doubts over the pair's further weakness, which if tackled can recall April 21 low near 0.6250.
During the quote's upside, 0.6505 can offer immediate resistance ahead of the pattern's upper-area, around 0.6560/70. If at all the buyers manage to conquer 0.6570, 61.8% Fibonacci Expansion (FE) of the pair's April 08 to May 07 moves, around 0.6660/65 can lure the buyers. It's worth mentioning that the MACD is flashing bearish signals and hence buyers are less likely to regain the command unless any surprises from the US CPI, up for publishing during the US session, can drag US Dollar Index (DXY) back from the two-week top.