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Thomson Reuters
Sep 04 - 02:36 PM
AUD/USD - COMMENT-AUD/USD Bears Eye 0.7100 And Lower
First appeared on eFXplus on Sep 04 - 01:15 PM

AUD/USD's overnight gains were quickly reversed and the pair looks set to test 0.7100 and most likely below.
The gains were eroded as the RBA gave bulls nothing new to latch onto, Australia's current account came in worse than forecast and emerging market currencies came under broad pressure again.
The price action deepened bear sentiment for techs that were already suggesting lower levels are due.
A bearish outside daily candle is in place and RSIs provide additional bearish momentum.
AUD/USD options markets bolster the idea that a further slide is coming.
Options plays with strikes of 0.7100 and 0.7000 remain in demand .
The 0.7110/60 zone is support.
Monthly lows from 2016 and 2017 sit there as does the 76.4 Fib of the 2016-18 rally.
A break of that support zone puts the February 2016 low at 0.6973 in play.
The 2016 low at 0.6827 is eyed thereafter.

chart: Click here

Source:
Thomson Reuters IFR Markets

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