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AUDUSD Technical analysis 25.10.17

AUDUSD

The released consumer inflation data in Australia turned out to be worse than predicted. Even if the monthly indicators has grown less than 0.6% against the predicted 0.8% and the previous value of 0.2%, on annual scale the growth slowed down from 1.9% to 1.8%. This news are likely to restrain RBA from raising the rates in any foreseeable future.

The price is below the middle Bollinger band, below SMA 5 and SMA 14. RSI is entering the oversold zone. Stoch are also entering the oversold territory.

Trading recommendations:

The pair is likely to correct to the support level of 0.7740, but we expect it to go further down to 0.7665, and possibly to 0.7600.

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