FxWirePro: AUD/USD slumps over 0.50%, slips below 200-DMA

AUD/USD chart - Trading View 

AUD/USD dives over 0.50% on the day to hit 5-day lows at 0.7513 before edging slightly higher to trade at 0.7519 at around 12:15 GMT.

Deteriorating coronavirus (COVID-19) conditions in Australia called for fresh restrictions in major parts, denting the Aussie across the board.

Falling iron ore prices, Australia’s biggest export earner, also weighed on the pair, dragging it lower.

Technical indicators also support weakness. Price action has slipped below 200-DMA. MACD and ADX support downside.

Price action has slipped below 200H MA and GMMA indicator shows bearish shift on the intraday charts.

Focus also on the US Consumer Confidence and housing data which could provide fresh trading impulse.

Support levels - 0.7499 (50% Fib), 0.7458 (Lower BB), 0.7379 (61.8% Fib)

Resistance levels - 0.7558 (200-DMA), 0.7621 (21-EMA), 0.7653 (110-EMA)

Summary: AUD/USD has failed to extend break above 200-DMA and has retraced below. Technical indicators support weakness. Scope for test of 61.8% Fib at 0.7379.