AUD/USD flashing red, recovery capped at 110 EMA, stay short
AUD/USD is flashing red on worsening trade tensions between the US and China.
Trump administration is reportedly planning to publish a list of 'new' tariffs that are to be imposed on $200 billion worth of Chinese goods.
PBOC adviser on the other side has reportedly said that China will consider counter measures should the Trump administration impose additional tariffs on Chinese imports.
AUD/USD has retraced below 21-EMA, trades 0.53% lower on the day at 0.7418 at the time of writing.
Minor recovery attempts were capped at 4H 110-EMA at 0.7429, more downside likely.
The pair has formed spinning top on Tuesday's candle and we see bearish divergence on Stochs on 4H charts which adds to the bearish bias.
Major trend in the pair is bearish and bearish turn on technical indicators on intraday charts suggests weakness.
Support levels -0.74 (4H cloud top), 0.7327 (61.8% Fib)
Resistance levels - 0.7431 (nearly converged 21-EMA and 5-DMA), 0.7484 (July 9&10 high)
Good to go short on upticks SL: 0.7450, TP: 0.7330.
Trump administration is reportedly planning to publish a list of 'new' tariffs that are to be imposed on $200 billion worth of Chinese goods.
PBOC adviser on the other side has reportedly said that China will consider counter measures should the Trump administration impose additional tariffs on Chinese imports.
AUD/USD has retraced below 21-EMA, trades 0.53% lower on the day at 0.7418 at the time of writing.
Minor recovery attempts were capped at 4H 110-EMA at 0.7429, more downside likely.
The pair has formed spinning top on Tuesday's candle and we see bearish divergence on Stochs on 4H charts which adds to the bearish bias.
Major trend in the pair is bearish and bearish turn on technical indicators on intraday charts suggests weakness.
Support levels -0.74 (4H cloud top), 0.7327 (61.8% Fib)
Resistance levels - 0.7431 (nearly converged 21-EMA and 5-DMA), 0.7484 (July 9&10 high)
Good to go short on upticks SL: 0.7450, TP: 0.7330.