FxWirePro: AUD/USD extends weakness below 200-DMA, eyes 61.8% Fib at 0.7379

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.20% lower on the day at 0.7483 at around 05:30 GMT.

Previous Week's High/ Low: 0.7616/ 0.7477

Previous Session's High/ Low: 0.7527/ 0.7491 

Fundamental Overview:

Australia struggles with virus variants amid local lockdowns for 80% of the population, keeping sentiment sour.

On the other side, upbeat US ADP data and hawkish comments from Fed's Kaplan buoy the US dollar.

Federal Reserve's Kaplan said on Wednesday he would prefer the central bank to start reducing its support for the economy before the end of the year to avoid abrupt policy tightening. 

On the data front, US Private payrolls increased by 692,000 jobs in June, beating estimates at 600,000. 

ADP data for May was revised lower to show 886,000 jobs added instead of the initially reported 978,000. 

Technical Analysis:

- AUD/USD is extending break below 200-DMA

- MACD and ADX support weakness in the pair

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

- GMMA indicator shows major and minor trend have turned bearish on the intraday charts

Major Support and Resistance Levels:

Support - 0.7449 (55-week EMA), 0.7423 (Lower BB), 0.7394 (61.8% Fib)

Resistance - 0.7499 (50% Fib), 0.7528 (5-DMA), 0.7598 (21-EMA)

Summary: AUD/USD trades with a bearish bias. Break below 200-DMA has reinforced weakness in the pair. Scope for test of 61.8% Fib at 0.7394.