FxWirePro: AUD/USD firms slightly, but downward resumption looks likely

• AUD/USD edged slightly higher   on Tuesday, but the broader outlook remains tilted to the downside as risk sentiment stays fragile amid ongoing geopolitical uncertainty.

• U.S. diplomatic pressure on Iran and Israel has helped reduce immediate escalation fears, but tensions persist  particularly with Yemen’s Houthi rebels threatening to disrupt Israeli maritime traffic in the Red Sea.

• A survey showed Australian consumer sentiment declined in June amid rising loan costs and petrol prices, with softer housing market expectations..

• The Westpac-Melbourne Institute survey showed consumer sentiment fell 2.9% in June to 80.6, with readings below 100 indicating more pessimists than optimists.

• Investors await next week’s Reserve Bank of Australia meeting, with rates expected to stay unchanged.

•  Immediate resistance is located at 0.7076(50%fib), any close above will push the pair towards 0.7145(SMA 20).

•  Support is seen at 0.7013 (Lower BB) and break below could take the pair towards 0.6988(61.8%fib).

 Recommendation: Good to sell around 0.7050 with stop loss of 0.7120 and target price of 0.6960