FxWirePro: AUD/ USD struggles to recover, good to sell on rally

• AUD/USD traded near multi-month low on Tuesday as higher US treasury yields bolstered US dollar across the board.

• Treasury yields surged overnight as expectations for aggressive U.S. easing diminished further in the coming months, despite the absence of a clear catalyst.

• Traders are only pricing in just a 25% chance of a rate cut from the Reserve Bank of Australia this year, while a first easing in April next year is now less than fully priced .

• At GMT 1:42, the pair   was trading    at  0.6655, the lowest in six weeks.

•  Immediate resistance is located at 0.6712 (38.2%fib), any close above will push the pair towards 0.6732(Oct 15th high).

• Support is seen at 0.6665(23.6%fib) and break below could take the pair towards 0.6626(Sep 11th low).

 Recommendation: Good to sell around 0.6670, with stop loss of 0.6800 and target price of 0.6600