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Technical Analysis: AUDUSD extends recovery gains on upbeat Aussie CPI data

Taking clues from better than the forecast readings of Australia's Q4 CPI data, AUDUSD extends rebound from 15-week-old horizontal support. Prices are now targeting 61.8% Fibonacci retracement of October-December upside, at 0.6805, during further recovery. However, 50% Fibonacci retracement and monthly trend-line, around 0.6850, could question the bulls afterward.

During the pair's fresh declines, which should drag it below 0.6750 support, 0.6710 and 0.6700 can entertain sellers ahead of highlighting December 2019 bottom close to 0.6670. Further to bears' pleasure, the quote's sustained fall below 0.6670 might not refrain from flashing 0.6600 mark on the chart.

On the fundamental side, the recent bounce could also be attributed to the risk reset due to receding fears of China's coronavirus outbreak. However, today's FOMC will be the key to watch.

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