FxWirePro: AUD/USD drifts lower as recovery rally loses momentum

• AUD/USD  eased on Tuesday   as markets recalibrated after experiencing sharp volatility a day earlier.

• Investor sentiment improved slightly after Trump stated that the conflict with Iran could be nearing its end and suggested the possibility of easing sanctions on Russia to stabilize global energy markets..

• Trump comments helped calm markets that had been rattled by fears of escalating geopolitical tensions and supply disruptions.

•  Meanwhile , uncertainty remains high, as it is still unclear how quickly the geopolitical situation can realistically be de-escalated.

• Meanwhile, oil prices have sharply reversed, giving up all the gains recorded after the weekend. WTI crude has dropped roughly 26.2% from Monday’s peak of $119.48.

•  Immediate resistance is located at 0.7076(SMA 20), any close above will push the pair towards 0.7139 (23.6%fib).

•  Support is seen at 0.7034 (38.2%fib) and break below could take the pair towards 0.7017(50%fib)

Recommendation: Good to buy around 0.7040 with stop loss of 0.6950, and target price of 0.7100