The Australian dollar climbed after Q4 inflation came in hotter-than-expected. On the daily chart, the euro turned south at the support-turned-resistance (1.5950) from a sell-off earlier last year. This suggests that the medium-term bias is still skewed to the downside. Zooming into the hourly chart, a break below 1.5400 has invalidated the latest bounce and confirmed the pessimism on the higher timeframe. The RSI’s oversold situation has gathered limited support over 1.5300, but stiff selling could be expected around 1.5470.
