FxWirePro: AUD/USD downside pressure persists as risk aversion reigns

• AUD/USD  eased on Monday escalating US–Iran conflict escalation  increased risk aversion and boosting demand for safe-haven   U.S. dollar..

• Oil prices surged sharply as limited storage capacity forced producers to consider output cuts, tightening supply expectations.

• With no clear end to the Middle East conflict and oil tankers still avoiding the Strait of Hormuz, investors are preparing for a prolonged period of elevated energy prices.

• Donald Trump called for Iran’s “unconditional surrender,” while Ali Khamenei’s son was reportedly chosen as a potential successor in Iran, signaling a continuation of hardline policies.

•  Concerns over a potential global recession and a sharp energy price shock are expected to keep the pound under pressure..

•  Immediate resistance is located at 0.7027(38.2%fib), any close above will push the pair towards 0.7075 (SMA 20).

•  Support is seen at 0.6960 (Lower BB) and break below could take the pair towards 0.6943(50%fib)

Recommendation: Good to sell around 0.6990 with stop loss of 0.7060, and target price of 0.6930