FxWirePro: Aussie under pressure on weak trade balance data, good to short AUD/JPY rallies

• Aussie remains under pressure as the series of weak data continue from Australia.
   
• Data released earlier today showed Australia trade surplus narrowed in October.
   
• October trade surplus registered at 105M, below expectations at 1375M, while exports dropped 3 percent.
   
• AUD/JPY extending downside for 2nd consecutive session, after failing to hold break above 200-DMA on Tuesday's trade.
   
• Price action capped below nearly 20 and 5-DMA at 85.23, price action currently hovers around 61.8% Fib support at 84.85.
   
• The pair has been on a downward spiral since Sept 2017 and we see further weakness on break below 61.8% Fib.
   
• On the flipside, we see further gains only on decisive close above 200-DMA. Scope then for test of 38.2% Fib at 86.93.

Support Levels: 84.85 (61.8% Fib retrace of 81.48 to 90.305 rally), 84.35 (Nov 27 low), 84, 83.37 (78.6% Fib)

Resistance Levels: 85.30 (20-DMA), 85.86 (200-DMA), 86.20 (Dec 5th high)

Recommendation: Good to go short on rallies around 84.90/ 85, SL: 85.90, TP: 84.35/ 84/ 83.40

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -176.17 (Bearish), while Hourly JPY Spot Index was at 148.307 (Bullish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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