- The AUD/USD pair extended the previous session’s retracement slide from near two-week tops and remained under some selling pressure for the second consecutive session on Wednesday.
- The downfall has now dragged the pair to 100-hour EMA, with bears now eyeing a follow-through selling below the key 0.70 psychological mark amid resurfacing US-China trade tensions.
Sustained break through a support marked by 38.2% Fibo. retracement level of the 0.6910-0.7045 recent up-move will be seen as a key trigger for bearish traders and set the stage for a subsequent slide towards the 0.6975-70 region.
Meanwhile, technical indicators on hourly charts have been gaining negative traction and support prospects for a further decline, albeit bullish oscillators on the daily chart warrant some caution before placing aggressive bets.
A follow-through selling might turn the pair vulnerable to head towards challenging the 0.6900 handle before the pair eventually resumes its prior/well-established bearish trend and aim back towards testing support near mid-0.6800s.
On the flip side, the 0.7045-50 region might continue to act as a strong resistance, which if cleared will negate any near-term bearish bias and set the stage for further appreciating move towards reclaiming the 0.7100 handle.
AUD/USD 1-hourly chart
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