AUDUSD Price Tested Key Resistance Level, Bearish Reversal

Today, the Australian dollar saw bad news due out from China's economic data. Where, the Chinese economy saw Q3 Purchasing Managers Index and Consumer's Price Index cam out below market estimates. This essentially confirms what the market has been expecting, that the Chinese economy is slowing down. This is of course bearish for the Australian dollar, as the Chinese manufacturing industry is biggest buyer of Australia's exports, being mostly commodities like metals & minerals.

Trade Step-ups:

Bearish Reversal: Price rejects a move higher from current resistance level, look for a move to test the bottom support levels of the bearish channel. Profits levels to look for are 0.7040 & 0.7010 respectively.

Bullish Breakout: Price breaks current resistance level, look for consolidation above 0.7110..