AUD/USD chart - Trading View
- AUD/USD flashes red at the beginning of the week's trade, Aussie depressed on poor data and escalating Sino-US trade war.
- Australia home loans fell 2.5% in March, reversing the 2% rise seen in February, missing expectations for a 0.5% rise.
- Poor data will likely boost dovish expectations from the Reserve Bank of Australia (RBA).
- Sino-US trade war shows little signs of de-escalation. On Saturday, Trump warned China on retaliatory tariffs. While, China warned Trump not to underestimate China’s will and endurance to fight.
- AUD/USD is in a major downtrend. Price action below cloud and major moving averages.
- Price action is extending sideways grind along 5-DMA. We see no major signs of reversal. Scope for test of dip till Lower BB at 0.6918.
- 21-EMA is immediate resistance at 0.7038. Bearish invalidation only above 200-DMA.
Support levels - 0.6955 (61.8% Fib), 0.6918 (Lower BB), 0.6862 (78.6% Fib)
Resistance levels - 0.70, 0.7020 (50% Fib), 0.7038 (21-EMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
