FxWirePro: AUD/USD breaks major trendline support, hits new 2-year low

Chart - Courtesy Trading View 

AUD/USD was trading 1.15% lower on the day at 0.6822 at around 04:35 GMT.

The pair has broken major trendline support at 0.6855 to test new two-year lows.

Australian dollar largely ignores upbeat China Caixin Manufacturing PMI data, awaits release of US ISM PMI for impetus.

China’s Caixin Manufacturing PMI rose to 51.7 for June versus 50.1 expected and 48.1 prior.

Escalating fears of the economic slowdown fuel risk-off mood across the markets which weighs on the pair.

The US ISM Manufacturing PMI for June is expected to print at 55.0 versus 56.1 prior. Underperformance in the US ISM PMI may weigh on the US dollar limiting downside in the pair.

Technical Analysis:

- GMMA indicator shows major and minor trend are bearish

- Price action is below major moving averages which are trending lower

- Momentum is bearish, volatility is high and rising

- 'Death Cross' on the the daily charts keeps bias lower

Major Support Levels: 0.68, 0.6755 (Lower BB), 0.6648 (June 2020 low)

Major Resistance Levels: 0.6884 (5-DMA), 0.6916 (200H MA), 0.6965 (21-EMA)

Summary: AUD/USD trades with a bearish bias. Scope for test of June 2020 lows at 0.6648.