FxWirePro: AUD/USD bears in control, 200-week SMA at 0.7230 in sight

AUD/USD chart - Trading View 

Technical Analysis: Bias Bearish

GMMA Indicator

- Daily Chart: Major and minor trend are strongly bearish

- Weekly Chart: Major trend is neutral, minor trend is bearish

Ichimoku Analysis

- Price action is well below the daily cloud and Chinkou span is biased lower

- The pair has dipped into the weeky cloud, further weakness likely

Oscillators

- Momentum is strongly bearish, Stochs and RSI are biased lower

- Stochs are at oversold levels which warrants some caution for pullbacks

Bollinger Bands

- Bollinger bands are spread far apart and are widening

- Volatility is high and rising and will drive the current bearish momentum further

Major Support and Resistance Levels: 

Support Levels: 0.7305 (110-week EMA), 0.7231 (converged 76.4% Fib and 200-week MA), 0.72 (Psychological mark)

Resistance Levels: 0.7390 (5-DMA), 0.74 (Psychological mark), 0.7438 (200H MA)

Summary: AUD/USD is extending downside for the 4th consecutive session, trades 0.26% lower at 04:30 GMT. The Reserve Bank of Australia (RBA) Minutes revived dovish expectations, keeping the Aussie depressed. 

Ongoing deterioration in risk appetite amid heightened fears that the accelerated spread of the Delta variant will derail the global economic recovery keep investors wary. Investor dump risky assets like the Aussie and chase safe haven plays. 

Guidance: Technical bias for the major is also strongly bearish. Scope for test of 0.7230 level.