FxWirePro: AUD/USD extends free-fall, hits new 3-year lows, break below 0.70 handle to see further weakness

AUD/USD chart on Trading View used for analysis

• AUD/USD hits fresh three-year lows, holds support at 0.70 handle.
   
• Aussie's confidence continues to evaporate after China's manufacturing PMI for December showed contraction for the first time since early 2017.
   
• Antipodean open 2019 on a firmly bearish note, scope for test of 0.69 handle in the coming weeks. 
   
• Risk appetite waning  in the Pacific sector, break below 0.70 handle to see acceleration in downside.
   
• The pair has breached major trendline support on the monthly charts, next major support lies at 0.69 (Sept 2015 low) ahead of 0.6827 (Jan 2016 low).
   
• On the flipside, 5-DMA is immediate resistance at 0.7036. Break above 200-DMA could see some upside continuation.

Support levels - 0.69 (Sept 2015 low), 0.6827 (Jan 2016 low), 0.6776 (Jun 2004 low)

Resistance levels - 0.7036 (5-DMA), 0.7109 (21-EMA), 0.7348 (200-DMA)

Recommendation: Watchout for break below 0.70 to go short, SL: 0.71, TP: 0.69/ 0.6830