AUD/USD Price Analysis: Bears have eyes on 0.70 the figure

AUD/USD is in the hands of the bears, but a meanwhile correction can not be ruled out.
0.7000 is calling the bears while the 0.7050/'60s could be re-tested first.

Ross J Burland FXStreet

Following a break of daily trendline support, AUD/USD has been in the hands of the bears in a sharp and decisive impulse on the daily chart which could be destined to test the December swing lows:

AUD/USD daily chart

Since the break of the trendline support, the price retested the old support area and was subsequently resisted which led to a downside continuation as follows:

The bears are well and truly in control and a daily close below the midpoint of the 0.70 area could indicate that the path of least resistance will continue to be to the downside for the rest of the week.

With that being said, a bullish correction on the lower time frames could be in order first:

The M-formation is a risk for bears considering the high probability that the price will revert back to, or towards the neckline of the pattern. The 38.2% Fibonacci could come under pressure in this regard before the next wave of selling occurs at a discount from current levels. This puts the 0.7050/'60s on the map for the remaining sessions ahead for the week in the first instance. On the other hand, should the bears commit prior to there, then 0.7000 could be seen first.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.