FxWirePro: AUD/USD fails at 50-DMA, slips lower as Aussie heavily sold-off amid ongoing Australian political turmoil

Refer AUD/USD chart on Trading View

• AUD/USD fails at 50-DMA, regains bearish momentum, slips below 21-EMA.
   
• Aussie heavily sold-off into ongoing Australian political turmoil, drags AUD/USD lower.
   
• Australia's beleaguered prime minister Turnbull appears to be losing the leadership battle.
   
• Following a spate of cabinet resignations, markets are bracing for a second leadership challenge in a week. 
   
• The uncertainty, and possibility of a general election, has dented the AUD across the board.
   
• The pair has been on a major downward spiral and rejection at 50-DMA has seen resumption of weakness. 
   
• Technically intraday charts have turned bearish. Scope for test of trendline support at 0.7185.

Support levels - 0.7202 (Aug 15 low), 0.7185 (trendline)

Resistance levels - 0.7332 (5-DMA), 0.7343 (21-EMA), 0.7379 (50-DMA)

Recommendation: Good to go short on upticks. SL: 0.7335, TP: 0.7250/ 0.72/ 0.7185

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -32.9275 (Neutral), while Hourly USD Spot Index was at 27.0931 (Neutral) at 0430 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.