AUD/USD Outlook: Aussie Cracks Key Supports on Omicron Concerns

Technical analysis of Forex market

Bears from 0.7555 (Oct 28/29 double-top) faced headwinds from key Fibo support at 0.7053 (38.2% of Mar 2020/Feb 2021 0.5509/0.8007 rally) with third consecutive probe through initial support at 0.7106 (Aug 20 former low) looking for an eventual close below this level.

Risk-sensitive Aussie dollar continues to suffer from growing Omicron uncertainty, with the action in past two days when strong rejections were registered on both sides, reflecting changes in risk flow as market look for more details about Omicron case.

Bearish daily studies support the action needs firm break of 0.7104 pivot as initial signal which will look for confirmation on extension through 0.7053 Fibo level.

On the other side, deeply oversold weekly stochastic warns of prolonged consolidation before bears resume.

Omicron news, US jobs data, and hawkish tones from the Fed chief, likely to be the key near-term drivers.

Res: 0.7116; 0.7164; 0.7200; 0.7248.
Sup: 0.7062; 0.7053; 0.7000; 0.6920.