FxWirePro: AUD/USD recovery lacks traction, eyes 88.6% Fib, stay short on upticks

AUD/USD chart on Trading View used for analysis

• AUD/USD slumped overnight after Fed delivered a hawkish rate hike decision.
   
• The major dived lower to fall below 0.71 handle, hit session lows at 0.7087 before paring some losses to close at 0.71.
   
• Minor recovery attempts on the day were rejected at session highs at 0.7125, the pair has resumed weakness, slips below 0.71 handle.
   
• The unexpected rise in the Aussie unemployment rate and the drop in the full-time jobs to keep downside intact.
   
• Australia's jobless rate ticked higher to 5.1 percent and full-time jobs dropped by 6.4K, following a 42.3K rise in October.
   
• Technical studies are biased lower, with no major signs of reversal. Scope for test of 88.6% Fib. Further weakness on break below.

Support levels - 0.7063 (88.6% Fib), 0.7021 (Oct 26 low), 0.70

Resistance levels - 0.71, 0.7146 (5-DMA), 0.7195 (50-DMA), 0.72

Recommendation: Good to go short on upticks, SL: 0.7150, TP: 0.7063/ 0.7025/ 0.70 

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.