The US is all set to fire the first shot in the trade war with the US, Beijing has vowed to retaliate in kind. Aussie risks falling below 0.7327 – 61.8 percent Fibonacci retracement of the rally from the January 2016 low to the January 2018 high – on escalating trade tensions. The US-China trade war is close to becoming a reality and hence the probability of Aussie dollar losing the long-term support of 0.7327 (61.8 percent Fibonacci retracement) is high. At press time, the AUD/USD is trading at 0.7383, having clocked a high of 0.7397 earlier today. The currency pair has been restricted to a narrow range of 0.73 to 0.77425 since June 27. The US would begin collecting tariffs on $34 billion in Chinese goods at 12:01 a.m. Washington time (0401 GMT) on Friday, according to Reuters. Further, Trump has threatened to impose additional tariffs on goods worth $400 billion if China retaliates in kind to initial US tariffs. Clearly, the world’s two largest economies are heading for a long drawn out trade war and that could hurt AUD and other risk assets. A break below 0.7327 would bolster the already bearish technical setup – bear flag breakdown on the daily chart and downward sloping 50-day, 100-day and 200-day moving averages. AUD/USD Technical Levels Resistance: 0.74 (psychological hurdle), 0.7424 (July 4 high), 0.7444 (June 24 high). Support: 0.7361 (previous day’s low), 0.7327 (61.8 percent Fibonacci retracement), 0.73 (psychological figure). Â FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US jobs: Average hourly earnings to increase 0.3% m/m and 2.8% y/y – Barclays FX Street 4 years The US is all set to fire the first shot in the trade war with the US, Beijing has vowed to retaliate in kind. Aussie risks falling below 0.7327 - 61.8 percent Fibonacci retracement of the rally from the January 2016 low to the January 2018 high - on escalating trade tensions. The US-China trade war is close to becoming a reality and hence the probability of Aussie dollar losing the long-term support of 0.7327 (61.8 percent Fibonacci retracement) is high. At press time, the AUD/USD is trading at 0.7383, having clocked a high of 0.7397 earlier today. The currency… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.