Winning streak in jeopardy
Barring an amazing comeback, the AUDUSD's streak of 9 straight up days will be broken today (the close yesterday was 0.7361 so are nearly 100 pips lower currently). China exports were down -3.7% (est -6.3%) but imports were down a larger than expected -20.4% vs. -15.0% estimate.
Technically, the pair failed to close above the 100 day MA or get above the 38.2% of the move down from the May high (see daily chart above). This area was highlighted as a tough nut to crack (see post from yesterday) and it proved to be a tough nut to crack.
The pair is currently falling below trend line (at 0.7301 currently), 100 hour MA (blue line at 0.7281), and 50% of the move down from the October 8th corrective low (at 0.72721). Traders will likely use these levels to define risk. The next targets come in at the 0.7234-46 area (swing high from Oct 7 and 61.8% of the move up from the Oct 8 low). Below that and traders will be looking toward the 0.7200-0.7210 area (0.7210 is the midpoint of the move up from the Sept 29 low).
