AUD/USD Price Analysis: Not out of the woods yet, remains vulnerable to retest 0.7000


AUD/USD struggled to capitalize approximately its intraday recovery from a one-week low.1.

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2.Hawkish Fed expectations acted as a tailwind for the USD and capped gains.

3.The puzzling setup favours bearish traders together in the middle of renewed COVID-19 jitters.

The AUD/USD pair attracted some buying stuffy maintain marked by the 50% Fibonacci level of the 0.6993-0.7188 recent touch taking place and stalled the previous morning's pullback from the 0.7175-80 place. The attempted intraday recovery from a one-week low touched before this Tuesday, however, lacked bullish conviction and remained capped close the 0.7135-40 horizontal sticking to breakpoint.

The US dollar trimmed a portion of its intraday losses taking into account the forgive of the hotter-than-epoch-honored US Producer Price Index, which reinforced hawkish Fed expectations. Apart from this, concerns approximately the potential economic fallout from the Omicron variant underpinned the safe-port greenback. This, along behind the cautious assist environment, acted as a headwind for the perceived riskier aussie.

Meanwhile, unnamed indicators upon the daily chart  even if have been recovering from lower levels  are yet holding in the bearish territory. Moreover, oscillators upon the 1-hour chart have anew started getting sticking together of negative traction and favour bearish traders. That said, it will be prudent to wait for appreciation out cold the 0.7100 mark previously positioning for any tallying downfall.

The AUD/USD pair might subsequently incline vulnerable to accelerate the slide towards intermediate preserve stuffy the 0.7060 region. The downward trajectory could auxiliary acquire lengthy towards challenging the key 0.7000 psychological mark, or the YTD low set earlier this month. Some follow-through selling should pave the habit for the resumption of the bearish trajectory witnessed since late October.

On the flip side, the 0.7135-40 region might continue to prosecution as sudden resistance. Any auxiliary cause problems taking place could still be seen as a selling opportunity near the 0.7175-80 zone, which if cleared decisively might negate the bearish bias. The AUD/USD pair might later surpass the 0.7200 mark and test the 0.7225 resistance in front eventually aiming to reclaim the 0.7300 round number level in the near term.

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