FxWirePro: AUD/USD plunges into daily cloud, further weakness on cards

Chart - Courtesy Trading View 

AUD/USD was trading 0.84% lower on the day at 0.6962 at around 10:40 GMT, outlook bearish.

The pair is extending a three-day downside, weaker than expected Australia Wage Price Index data drags the antipodean.

Data released by the Australian Bureau of Statistics showed Australian Wage Price Index remained unchanged at +0.7% missing expectations for a rise to +0.8%.

The data has weighed on the price of AUD. AUD/USD is slipping lower as we write, trades at 0.6958 the low of the session so far being 0.6955.

Technical indicators point to further weakness in the pair. Price action has plunged into the daily cloud. 

Momentum is bearish. Stochs have rolled over from overbought levels and RSI is sharply lower and has slipped below the 50 mark.

Recession worries and geopolitical tussles keep downside pressure. FOMC Minutes will be watched closely to confirm a 0.75% rate hike in September.

Support levels - 0.69, 0.6868 (Lower BB)

Resistance levels - 0.6981 (55-EMA), 0.7048 (110-EMA)

Summary: AUD/USD trades with a bearish bias. Scope for test of cloud base support. Breach below cloud will accentuate downside.