AUDUSD Bears Eye a Decisive Break Below 0.7100


After struggling to build on early attempted rebound, AUDUSD bears eye a decisive a break below 0.7100 handle. What is next? This technical analysis reveals.

10 September, OctaFX – The latest US monthly jobs report reaffirmed prospects for an eventual Fed rate hike move in September and reignited the US Dollar rally on Friday.

This coupled with escalating US-China trade tensions further dented the already weaker sentiment surrounding the China-proxy Australian Dollar. 

US-China trade war

Against the backdrop of earlier promises to levy duties on $200 billion worth of Chinese goods, the US President Donald Trump threatened to impose tariffs on a further $267 billion worth of Chinese imports and resurfaced worries about a full-blown trade war between the world’s two largest economies.

The downfall, however, remained cushioned, at least for the time being amid absent relevant market-moving economic releases. Moreover, near-term highly oversold conditions further warrant some consolidation before the pair continues with its well-established bearish trajectory.

AUDUSD Bears Eye a Break Below 0.7100 

A follow-through selling below the 0.7100 handle is likely to accelerate the fall towards 0.7060-50 intermediate support before the pair eventually aims towards challenging the key 0.70 psychological mark. 

On the flip side, any meaningful recovery attempts might now confront fresh supply near the 0.7150-60 region, above which the short-covering move could further get extended towards the 0.7200 round figure mark.

Disclaimer

This article about AUDUSD Bears Eye a Decisive Break Below 0.7100 was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

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