• AUD/USD looking weak on the day as USD broadly supported on better than expected CPI data on Thursday
  • US CPI induced gains were capped at 0.7338, were selling pressure was seen, pair has now slipped below the 0.73 handle
  • Cloud base at 0.7322 is seen as strong resistance, pair unable to close above yesterday, correction lower likely
  • Daily Stochs are at oversold and RSI is also biased lower, pullbacks to 10 DMA at 0.7255 possible
  • AUD/USD is currently trading at 0.7290, with immediate resistance at 0.7310 (4H Tenkan) and support at 0.7285 (session low Oct 16)

Resistance Levels:R1: 0.7310 (4H Tenkan)R2: 0.7337 (session high Oct 16)R3: 0.7344 (Oct 9 highs)Support Levels:S1: 0.7285 (session low Oct 16)S2: 0.7256 (10 DMA)S3: 0.7224 (Daily Tenkan)

The material has been provided by InstaForex Company – www.instaforex.com