FxWirePro: AUD/USD erases early gains, slips below 21-EMA support, bias turning bearish

AUD/USD chart - Trading View 

AUD/USD has erased early gains and has slipped lower from session highs at 0.7368 and was trading 0.14% lower at 0.7339 at around 05:30 GMT. 

Resumption of US-China talks after multiple months of silence favor market sentiment and commodity prices. 

Additionally, news of potential deal with Iran to solve "the most urgent issue" boosts sentiment. 

Technical Analysis:

GMMA Indicator

- Bearish on daily and weekly charts

Ichimoku Analysis

- Recovery attempts were capped at daily cloud which is stiff resistance

- Price action is within the weekly cloud

Oscillators

- RSI is biased lower and has slipped below 50 mark, Stochs are biased lower

- Oscillators show bearish bias

Bollinger Bands

- Bollinger bands are widespread, showing high volatility

Summary: AUD/USD price action had been capped between major moving averages - 21 and 55 EMAs from the past few sessions. Break below 21-EMA has reinforced downside bias in the pair.

Next major support lies at 20-DMA at 0.7305. Bearish invalidation only above daily cloud.