The Australian dollar was the main beneficiary, because of China's trade balance, which showed a surplus well above expectations. The Aussie reached a new high since September 14. Positive news from the Asian giants tend to have an effect on all markets, especially Australia, the main raw material supplier.
According to technical analysis, the Aussie is overbought, the trend indicator is in the overbought area and is likely to stop rising. We can see a reversal. The first support to face is that of 1.0550. If this level is broken, the fall of this pair is almost certain, because of the last week attempt to cover the gap, which was left with a small hole. The pair should reach this level within the upcoming days. We, therefore, recommend selling according to the chart data.
If you need personal consultation, contact me via e-mail: gerardo.porras@analytics.instaforex.com
