FxWirePro: AUD/USD pauses downside at 110-EMA support, vaccine optimism supports Aussie

AUD/USD chart - Trading View 

AUD/USD has halted its corrective pullback at 110-EMA support, traders cheer AstraZeneca news.

The major was trading 0.39% higher on the day at 0.7609 at around 02:15 GMT, after closing 0.55% lower in the previous session.

AstraZeneca confirmed the efficacy of its vaccines to combat the coronavirus (COVID-19) and its variants during the phase 3 trials.

Official updates from the pharma major confirmed 100% efficacy against severe and critical disease as well as 85% efficacy for those aged 65+.

However, escalating U.S.-China trade tussle, as American securities regulator prepares for further tightening of rules for the foreign firms, indirectly targeting Chinese firms, is likely to keep upside limited.

Further, North Korea’s missile test and mixed clues from the Fed policymakers are also challenging the risk-on mood.

Focus on U.S. data with Personal Consumption, Initial Jobless Claims and Q4 GDP on cards which could drive price action.

Major Support Levels: 

S1: 0.7572 (110-EMA)

S2: 0.7417 (23.6% Fib)

S3: 0.7361 (200-DMA)

Major Resistance Levels: 

R1: 0.7658 (5-DMA)

R2: 0.7689 (Cloud top)

R3: 0.7693 (55-EMA)

Summary: Technical bias for the pair is bearish. Price action has slipped below daily cloud and breach at 110-EMA support will drag prices lower. 

Next major bear targets lie at 23.6% Fib at 0.7417 ahead of 200-DMA at 0.7361. On the flipside, bounce off 110-EMA and retrace above cloud will negate any bearish bias.