FxWirePro: AUD/USD recovery attempts capped at 4H 110 EMA, good to short upticks

• AUD/USD is flashing red on worsening trade tensions between the US and China.
   
• Trump administration is reportedly planning to publish a list of 'new' tariffs that are to be imposed on $200 billion worth of Chinese goods.
   
• PBOC adviser on the other side has reportedly said that China will consider counter measures should the Trump administration impose additional tariffs on Chinese imports. 
   
• AUD/USD has retraced below 21-EMA, trades 0.53% lower on the day at 0.7418 at the time of writing.
   
• Minor recovery attempts were capped at 4H 110-EMA at 0.7429, more downside likely.
   
• The pair has formed spinning top on Tuesday's candle and we see bearish divergence on Stochs on 4H charts which adds to the bearish bias.
   
• Major trend in the pair is bearish and bearish turn on technical indicators on intraday charts suggests weakness.

Support levels -0.74 (4H cloud top), 0.7327 (61.8% Fib)

Resistance levels - 0.7431 (nearly converged 21-EMA and 5-DMA), 0.7484 (July 9&10 high)

Recommendation: Good to go short on upticks around 0.7420/30, SL: 0.7485, TP: 0.74/ 0.7330.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -101.219 (Bearish), while Hourly USD Spot Index was at 71.6984 (Neutral) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.