- AUD extends slight recovery on the day after being hammered lower last week on expectations of further RBA easing.
- Australia CPI release on Wednesday would be the key determinant of RBA monetary policy stance on August 11th.
- AUD/JPY slides along stiff channel top resistance, downside pauses at 20-DMA support by 78.16.
- Break below will accentuate weakness, scope for test of 75.60.
- Techs are bearish, Stochs and RSI biased lower, MACD is on the verge of a bearish crossover on signal line.
- Bearish invalidation only above channel top currently at 80 levels.
Recommendation: Good to go short on rallies around 78.60, SL: 79.20, TP: 78.20/ 78/ 77.30
