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.
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