• 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

AUD/USD

Overview
Today last price 0.7127
Today Daily Change -0.0004
Today Daily Change % -0.06
Today daily open 0.7131
 
Trends
Daily SMA20 0.7298
Daily SMA50 0.7339
Daily SMA100 0.734
Daily SMA200 0.7515
 
Levels
Previous Daily High 0.716
Previous Daily Low 0.7114
Previous Weekly High 0.7273
Previous Weekly Low 0.7111
Previous Monthly High 0.7557
Previous Monthly Low 0.7191
Daily Fibonacci 38.2% 0.7131
Daily Fibonacci 61.8% 0.7142
Daily Pivot Point S1 0.711
Daily Pivot Point S2 0.7088
Daily Pivot Point S3 0.7063
Daily Pivot Point R1 0.7156
Daily Pivot Point R2 0.7181
Daily Pivot Point R3 0.7203

 

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