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.
