Forex: USD selling on weak China CPI

FXstreet.com (Barcelona) - The USD is having a small push to the downside following weaker than expected China CPI y/y at 1.7% for the month of October, when a 1.9% was the consensus, and 5.5% was the number for Oct last year. Local share markets and SP500 futures are also having some relief rally after heavy loses in last 2 days, still in the red, but off session lows.

EURUSD is last trading at session highs 1.2761, off session lows at 1.2731, while AUDUSD is also at session highs 1.0412 off session lows at 1.0376, following dovish RBA meeting minutes, and USDJPY at 79.54. USD index chart in 1H is breaking to the downside the neckline of a tiny head and shoulders reversal pattern with the head being a double high at 80.96, that would point to 80.60 in case the pattern finally develops.

Immediate support to the downside for USD index lies at current levels/200 day SMA at 80.76, followed by Nov 05 lows at 80.50, and Oct 29 highs/Wednesday's lows post-Obama reelection at 80.32. To the upside, nearest term resistance comes at Monday's highs 80.84, followed by yesterday's highs and fresh 2-month highs 80.99, and June 19 lows at 81.18.