AUD/USD chart on Trading View used for analysis
- AUD/USD resumes weakness below 0.71 handle, trades 0.25% lower on the day at 0.7064 at the time of writing.
- The pair is accelerate its bearish stance after rejection at 21-EMA resistance.
- Momentum studies are bearish and we see scope for the Aussie to hit fresh 2018 low.
- Rising Metal ore prices could provide some support to the Aussie.
- But, major trend remains bearish. Any further upside only on decisive break above 21-EMA at 0.7128.
- Continued geopolitical tensions constrain overall market sentiment and keep downward pressure on the major.
Support levels - 0.7041 (Oct 8 low), 0.6970 (channel base)
Resistance levels - 0.7094 (5-DMA), 0.7128 (21-EMA), 0.72
Recommendation: Good to go short on upticks, SL: 0.71, TP: 0.7040/ 0.70/ 0.6970
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
