AUD/USD Outlook: Aussie Hit New Low As Sentiment Soured After Renewed US/China Trade Friction

Technical analysis of Forex market

The Aussie dollar holds within choppy range above new two-month low at 0.6962, after strong gap-lower opening today, as Aussie was hurt by souring sentiment in US/China trade talks.

Fresh bears found footstep above key Fibo support at 0.6931 (61.8% of 0.6706/0.7295), violation of which would risk extension towards 0.6900 zone, where a number of stops is parked.

Firm bearish setup of daily/weekly studies maintains negative outlook which requires close below former low at 0.6988 (25 Apr).

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Caution on bullish divergence on daily stochastic which gives initial signal of stronger recovery, but close above 0.6988 is seen as minimum requirement for such scenario.

Traders are focusing RBA policy meeting, due later this week, as economists are divided in forecasts for keeping rates on record low or cutting, following disappointing Q1 inflation data.

Res: 0.7000, 0.7014, 0.7029, 0.7068
Sup: 0.6962, 0.6931, 0.6900, 0.6850

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