FxWirePro: AUD/USD extends weakness below 0.73 handle amid souring risk sentiment

Chart - Courtesy Trading View 

AUD/USD was trading 0.48% lower on the day at 0.7254 at around 03:30 GMT.

The pair is extending previous session's weakness risk sentiment turns sour amid China Covid concerns and indecision over Russia-Ukraine crisis.

Chinese stocks tumble due to the coronavirus resurgence. Many cities under COVID-19 shutdown measures.

Fresh signs of worry seen on the Ukraine crisis as Ukraine President Zelenskyy emphasizes more Russian sanctions despite good progress on peace talks.

That said, diplomats from US and China agreed to meet in Italy for the first time since the Ukraine-Russia crisis, keeping markets hopeful.

Technical indicators for the pair have turned bearish. 5-DMA has turned south and Stochs and RSI are biased lower.

Price action has retraced below 200-DMA and is holding above 110-EMA support. Break below will see more weakness.

Major Support Levels: 

S1: 0.7245 (110-EMA)

S2: 0.7222 (55-EMA)

Major Resistance Levels: 

R1: 0.7296 (5-DMA)

R2: 0.7309 (200-DMA)

Summary: AUD/USD poised for further downside. Breach below 110-EMA will see dip till 0.7220.