AUD/USD sees bear flag breakdown after weak China trade data
- China October trade surplus widened less than expected.
- AUD/USD suffers bear flag breakdown on the 15-minutes chart.
The AUD/USD has backed-off from the session high of 0.7659 after China trade surplus came-in at CNY 254.5 billion vs. CNY 275.0 billion.
Exports printed at 6.1% y/y vs 7.0% expected and 9.0% last, while imports came-in at +15.9% y/y vs 17.5% expected and 19.5% last. Also reported was the data for Jan-Oct period, which showed export growth of 11.7% y/y and import growth of 21.5% y/y.
Bear flag breakdown
The currency pair has suffered a bearish flag breakdown on the 15 minute chart, which signals revival of the sell-off from the Nov. 6 high of 0.77.
As of writing, the currency pair is trading around 0.7645 levels.
AUD/USD Technical Levels
FXStreet Chief Analyst Valeria Bednarik writes - "Technically and in the near-term, the risk remains towards the downside, with the pair about to challenge October's low of 0.7624. In the 4 hours chart the 20 SMA turned sharply lower above the current level, while the RSI extended its slide to the current 37 level as the Momentum holds flat within bearish territory, all of which supports a new leg lower ahead."
Support levels: 0.7625 0.7590 0.7555
Resistance levels: 0.7685 0.7730 0.7770