FxWirePro: AUD/USD extends weakness after rejection at 21-EMA

Chart - Courtesy Trading View 

AUD/USD was trading 0.39% lower on the day at 0.7101 at around 04:20 GMT, after closing 0.54% lower in the previous session.

On the data front, National Australia Bank’s (NAB) Business Conditions grew from 11 to 12 in November while the NAB Business Confidence eased to 12 versus 21 prior.

Cautious sentiment prevails ahead of Australia’s employment report for November, scheduled on Thursday.

Focus also on US Producer Price Index (PPI) for November for further impetus. PPI is expected at 9.2% YoY versus 8.6% in the prior month.

The pair has resumed downside after rejection at 21-EMA, price action has slipped below 5-DMA.

Major bias for the pair is bearish. Recovery attempts were rejected at 21-EMA. Scope for further downside. 

Support levels - 0.7051 (38.2% Fib), 0.7014 (Lower BB)

Resistance levels - 0.7143 (5-DMA), 0.7171 (21-EMA)

Summary: AUD/USD has resumed bearish bias after recovery was rejected at 21-EMA. 38.2% Fib at 0.7051 in sight. Scope for further downside on break below. Bearish invalidation only above 200-week MA.