FxWirePro: AUD/USD hits 1 1/2 -year low, break below 61.8% Fib to see further weakness

• AUD/USD hits 1 1/2 -year lows at 0.7223 before paring some losses to currently trade at 0.7345 levels.
   
• The pair grinds lower as risk aversion continues through the week. Ongoing slide in copper prices weighs further on the commodity-linked antipodean.
   
• Price action has shown a breach at channel base support at 0.7430 which has raised scope for further weakness.
   
• The pair is currently holding support at 61.8% Fib at 0.7327. Break below will see resumption of weakness.
   
• Next major support on the downside lies at 0.7160 (Dec 2016 low) ahead of 0.7107 (78.6% Fib).
   
• On the flipside, retrace into channel and close above channel base could invalidate bearish bias. 

Support levels - 0.7327 (61.8% Fib), 0.73, 0.7160 (Dec 2016 low)

Resistance levels - 0.7386 (5-DMA), 0.74, 0.7430 (channel base), 0.7458 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-AUD-USD-recovery-capped-at-5-DMA-break-below-07340-to-accentuate-weakness-1391174) has hit TP1.

Recommendation: Bias lower. Targets extended to 0.72/ 0.7160.

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -47.4544 (Neutral), while Hourly USD Spot Index was at 41.6295 (Neutral) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.