Breaking: AUD/USD refreshes yearly low near 0.7100 on bearish Doji, Omicron-led fears

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