AUD/USD opens July on its heels, and the pair looks especially vulnerable amid soured risk sentiment and escalating trade tensions.
Although the ASX 200 dipped just 0.3 percent Monday, global equities are adrift in a sea of red.
Indeed, with government bond yields, iron-ore and copper all slumping, risk is taking a hit.
And emerging market currencies, which AUD/USD remains a proxy for, have been battered as traders look for safety.
Although AUD/USD did make a new short-term high in Asia it has since slumped and technicals remain less than supportive.
The pair has fallen back below the 10-Day SMA and is nearing June's low.
RSIs are biased down and not diverging and a bearish outside candle was put in place for June.
Thus, a clean break of the 61.8 Fib of the 2016-18 ascent at 0.7327 and June's 0.7323 low will bolster bear sentiment.
Traders will then target the 0.7165/35 zone where the 76.4 Fib of the 2016-18 rally and monthly lows from January 2017 and December 2016 reside.
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