AUD/USD - AUD/USD Gave up all of its Gains - 10/27/2016 (GMT)

During yesterday’s session, the big story was the aussie which gave up all of its gains from the previous days. Immediately after the release of the consumer prices, the AUD/USD pair jumped above the 0.7700 price level, however, it swiftly met resistance and ended the day near the 0.7740 level. The commodity pair slipped below the 50-SMA but is still moving above the other two SMAs (100-SMA and 200-SMA). The next initial target is the 0.7580 – 0.7600 strong support zone which coincides the 23.6% Fibonacci level on the daily chart and moreover the ascending trend line which holds since January.

On the 4-hour chart, technical indicators are biased lower and are ready to enter the negative territory. The MACD oscillator is moving below its trigger line but is still above the zero line while the RSI indicator fell below the 50 level after the rebound on the overbought level.