FxWirePro: AUD/USD extends rout to test four-month low, uncertainty ahead of Fed policy decision dents antipodeans

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.08% lower on the day at 0.7054 at around 06:30 GMT, slightly higher from session lows at 0.7032.

Previous Week's High/ Low: 0.7250/ 0.7054

Previous Session's High/ Low: 0.7179/ 0.7057

Fundamental Overview:

Uncertainty ahead of the Fed monetary policy announcement has strengthened the negative market sentiment, denting risk-perceived currencies like the Aussie.

Amid ongoing Russia-Ukraine crisis, fears of global economic slowdown and inflation boom, adds to the US dollar’s safe-haven demand. 

Focus now on US ISM Manufacturing PMI for April, expected at 58.0 versus 57.1 prior, for short-term directions.

Technical Analysis:

- AUD/USD is extending break below 200-week MA

- Momentum is strongly bearish, Stochs and RSI are sharply lower

- Price action is below cloud and Chikou span is biased lower

- MACD and ADX support downside

- GMMA indicator shows minor trend is bearish while minor trend is turning bearish

Major Support and Resistance Levels:

Support - 0.7006 (Lower BB), Resistance - 0.7090 (5-DMA)

Summary: AUD/USD poised for more downside. Next support lies at 2022 low at 0.6967.