“¢ The pair has managed to recover a part of its early slide to multi-day lows, with bulls now looking to extend the intraday bounce further beyond 200-hour SMA resistance near the 0.7100 handle.
“¢ Given last week’s repeated failures near the 0.7130 supply zone, the subsequent weakness at the start of a new trading week now points to some renewed selling bias and additional near-term weakness.
“¢ Technical indicators on the 1-hourly chart maintained their bearish bias and have just started gaining negative momentum on 4-hourly/daily charts, adding credence to the bearish outlook.
“¢ Hence, a follow-through weakness, back towards the 0.7055-50 support area, now looks a distinct possibility, though the latest optimism over the US-China trade talks might help limit the downside.
“¢ On the flip side, only a sustained move beyond the mentioned supply zone might negate the negative set-up and prompt some near-term short-covering move towards the 0.7200 handle (200-DMA).
AUD/USD 1-hourly chart
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