Breaking: AUD/USD refreshes yearly low near 0.7100 on bearish Doji, Omicron-led fears
|
- AUD/USD takes offers to refresh intraday low after posting the bearish candlestick.
- Moderna Chief’s comments offer immediate burden on the risk catalysts.
- 20-SMA and two-week-old resistance line limit short-term upside.
- Yearly low holds the key for 100-pip fall, 0.7100 adds to the downside filters.
AUD/USD sellers attack yearly bottom surrounding 0.7100 in a fresh wave of selling ahead of Tuesday’s European session. The latest fall in Aussie prices could be linked from the markets fears that the global medicine suppliers will lack strength to overcome the Omicron-led virus woes.
The market fears got boost from Moderna’s Chief Executive Stéphane Bancel. Also weighing on the risk apetite could be early-Asian prepared remarks from Fed Chair Jerome Powell who kept his reflation view intact despite citing virus woes to weigh price pressure and employment.
In doing so, the Aussie pair justifies the bearish Doji candlestick on the four-hour chart below a fortnight-old resistance line and 20-SMA. Adding to the bearish bias is the MACD line’s failure to extend previous recovery moves.
While Doji and the stated upside hurdles direct AUD/USD prices to the south, the yearly low near 0.7105 and the 0.7100 challenges the pair sellers.
However, a clear downside break of the 0.7000 mark will open a door for a 100-pip fall towards a horizontal area comprising multiple levels marked since June 2020.
Alternatively, 20-SMA and the stated immediate support line restricts corrective pullback below 0.7155, a break of which will direct the AUD/USD buyers towards the 0.7200 threshold.
To sum up, bears are likely to keep the reins ahead of US CB Consumer Confidence for November and covid updates, followed by Fed Chair Jerome Powell’s testimony.
AUD/USD: Four-hour chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.