FxWirePro: AUD/USD muted around 5-DMA, bearish divergence keeps scope for downside

• AUD/USD muted around 5-DMA, Aussie dented post downbeat inflation data.
   
• Australia's Q4 CPI rose by 0.6 percent q/q, missing expectations for 0.7 percent rise.  Annual inflation was lifts marginally to 1.9 percent.
   
• AUD/USD in the red for the 3rd straight session, bearish divergence on RSI and Stochs keep scope for downside.
   
• Stochs and RSI are on verge of rollover from overbought levels. Price ignores bullish engulfing pattern on 26th trade.
   
• Close below 5-DMA along with rollover in RSI and Stochs will see further downside.
   
• Immediate major support at 1H 200-SMA (currently at 0.8047). Scope then for test of 0.7986 (23.6% Fib retrace of 0.7501 to 0.8135 rally) on break below.

Support levels - 0.8075 (5 DMA), 0.8047 (1H 200-SMA), 0.80, 0.7986 (23.6% Fib retrace of 0.7501 to 0.8135 rally)

Resistance levels - 0.8125 (2017 high), 0.8166 (50% Fib retrace of 0.9505 to 0.6827 fall), 0.8220 (channel top)

Recommendation: Short decisive break below 5-DMA, SL: 0.8135, TP: 0.8050/ 0.80/ 0.7985.

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