AUD:USD The pair trades below 9-14 EMA below trading channel.

  • AUD/USD sold-off into higher Treasury yields-driven US dollar strength.
  • The 1H chart suggests more losses amid trendline breakdown, bearish crossover.

General Overview: AUD/USD started its bearish movement towards the downfall channel. The Aussie remains sold-off into increased US stimulus expectations-led rally in Treasury yields, which underpins the advance in the US dollar. Further, the US-Sino tensions over the Taiwan developments also likely weigh on the AUD, as markets shrug-off upbeat Chinese inflation data. Technically, the selling pressure around the major intensified after the AUD bulls failed to defend the week-long rising trendline support at 0.7757 on the hourly chart. The bearish crossover also adds credence to the renewed downside, as the pair seems to have just pierced the 50 EMA from above. Meanwhile, the hourly Relative Strength Index trends lower around 31.50, still holding above the oversold region, suggesting that there is more room to the downside. So we can say the market will be on the low side in the market. The pair will likely to fall as the market shows more volatility in the market. The rapid decline appears to be running ahead of itself and while the risk is on the downside, any weakness is unlikely to challenge the major support at 0.7640. So, we can suggest our seller to go more downfall in this coming session.

Reason& analysis: we can conclude from the technical point of view that the more bearish outlook can be done in the market. the market trades towards the negative side and more downfall can be expected now. The market sets towards its low side in the market. On the daily chart we can see the price is falling towards the downside in the market the bearish marabuzo is formed on the chart and we can expect more downfall can be expected. The bearish signals established on the market. The indicator is also about to fall and continuous decline can be expected in the market. In addition to the 0.7700 round-figure, a 10-week-old rising support line, around 0.7675, also restricts short-term AUD/USD downside. The fresh selling opportunity can be seen in the market so we can suggest our sellers to go for selling option.

The support level is 0.7600 followed 0.7500 resistance is 0.7800 followed by 0.7900.

Trade idea: we can conclude from the above data sellers should go for sell at level 0.7708 and target will be 0.7567-0.7440 and stop loss is 0.7879.


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