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FxWirePro: AUD/USD breaks below 21-EMA, Aussie under pressure on sluggish PMI data

AUD/USD chart - Trading View 

AUD/USD extends weakness for the 4th straight session, slips below 21-EMA support.

Aussie under pressure after Westpac, one of the big four Australia banks, brings forward the timing of the next RBA rate cut.

Westpac now expects the RBA to deliver a 25 bps rate cut in October compared to the previous forecast in November.

Australia's Composite PMI for July showed employment decreased for the first time since April and to the greatest extent since May 2016, adding to downward pressure on the pair.

The major has retraced break above 200H SMA, volatility is rising on the intraday charts.

Technical indicators are turning bearish. RSI slips below 50 and Stochs are on verge of rollover from oversold. 

Bears eye 50-DMA at 0.6956. Break below cloud will accentuate weakness. Bearish invalidation only above 200-DMA.

Support levels - 0.6956 (50-DMA), 0.6927 (cloud base), 0.69

Resistance levels - 0.70, 0.7024 (converged 5-DMA and 110-EMA), 0.7075 (trendline)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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