- Aussie slips across the board, following the weakest yuan fix against the US Dollar since August 2015.
- PBOC set today's USD/CNY at 6.6375 vs 6.5776, USD/CNY hits its highest level since Jan 2011.
- A weaker Chinese industrial profits print released earlier on the day also weighed heavily on the sentiment surrounding the commodity currencies.
- The pair finds minor support at 0.74 (20-DMA), break below will drag the pair lower to test trendline at 0.7315.
- Momentum studies are bearish, Stochs have rolled over from overbought levels, RSI is biased lower.
- Immediate support and resistance are seen at 0.74 (20-DMA) and 0.4722(100-DMA).
Recommendation: Good to go short on break below 0.74, SL: 0.7445, TP: 0.7330/ 0.7315/ 0.73
The material has been provided by InstaForex Company – www.instaforex.com