The pair has edged lower to break below 100-DMA and is currently trading at 1.0956 levels.
Aussie dented after lower than expected Australia CPI data released earlier today.
Australia Q4 RBA trimmed mean CPI Q/Q was flat at 0.4 % (forecast 0.5 %) vs previous 0.4 %.
Australia Q4 CPI Q/Q also remained unchanged at 0.6 % (forecast 0.7 %) vs previous 0.6 %.
Downside finds strong support at 20-DMA at 1.0950. Break below will accentuate weakness.
We then see scope for test of support at 1.0875. Breach there could see 61.8% Fibo at 1.0721.
Technical studies have turned . has turned south and we see a -ve DMI crossover.
Stochs are also on verge of a rollover from overbought levels.
Watch out for decisive break below 20-DMA to go short, place stops at 100-DMA at 1.1002, targets 1.0875/ 1.08/ 1.0721
Support levels: Resistance levels:
S1: 1.0950 ( 20-DMA ) R1: 1.10 (nearly converged 5&100-DMA)
S2: 1.0875 ( ) R2: 1.1055 (major )
Scope for more downside. Next bear target 61.8% Fib at 1.0721.