FxWirePro: AUD/USD consolidates previous session's slump, eyes 0.7150 (200-week MA)

Chart - Courtesy Trading View 

AUD/USD was trading 0.10% lower on the day at 0.7180 at around 05:10 GMT, outlook bearish.

The pair is consolidating previous session's massive slump and is on track to test 200-week MA support at 0.7150.

Surging COVID-19 cases in China raise fears of slump in the mainland's economic growth in the first quarter, weighing on investors' confidence.

Technical indicators for the pair have turned bearish. Price action is now well below 200H MA. Scope for further downside. 

Hopes that talks between Russia and Ukraine due to resume on Tuesday could provide a resolution to the conflict provided some downside cushion.

Focus now on the FOMC meeting due Wednesday where the central bank is expected to hike interest rates for the first time in three years to offset rising inflation.

Major Support Levels: 

S1: 0.7150 (200-week MA)

S2: 0.7140 (Cloud top)

S3: 0.7123 (Lower BB)

Major Resistance Levels: 

R1: 0.7218 (55-EMA)

R2: 0.7243 (110-EMA)

R3: 0.7266 (5-DMA)

Summary: AUD/USD poised for further weakness. Dip till 0.7150 likely. Watch out for breach below 200-week MA for further downside.