FxWirePro:AUD/USD momentum strongly bearish despite pause in losses

• AUD/USD stayed near a two-year low on Tuesday as trading volume remained thin as markets headed into the New Year’s holiday on Wednesday.

• The Australian dollar has dropped 8.8% this year. It had reached a high of $0.6943 in September, but a wide surge in the US dollar brought it down to a two-year low of $0.6199.

• At the same time, poor data in Australia has prompted investors to anticipate further domestic policy easing.

•Markets imply around a 45% chance the Reserve Bank of Australia (RBA) will cut its 4.35% cash rate in February.

• At GMT 05:45, The Australian dollar  was last  trading up 0.02% to $0.6240.  

•  Immediate resistance is located at 0.6248(Dec 30th high), any close above will push the pair towards 0.6292(38.2%fib).

•  Support is seen at 0.6206 (23.6%fib) and break below could take the pair towards 0.6066(Lower BB).

 Recommendation: Good to sell around 0.6240, with stop loss of 0.6300 and target price of 0.6160