FxWirePro: AUD/USD fails to extend previous session's gains, trades weaker ahead of U.S. inflation data

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.12% lower on the day at 0.7336 at around 06:30 GMT

Previous Week's High/ Low: 0.7426/ 0.7329

Previous Session's High/ Low: 0.7355/ 0.7315

Fundamental Overview:

AUD/USD failed to capitalize on the previous day's modest bounce. Rising bets for an earlier Fed taper continued underpinning the USD and capped gains.

Worries about the potential economic fallout from the spread of the highly contagious Delta variant of the coronavirus keeps the antipodeans depressed.

Investors now await the monthly U.S. personal consumption report due at 1230 GMT that could influence the Fed's timeline to taper monetary support.

USD could get a further boost from an upbeat inflation reading, adding to expectations of policy tightening.

Technical Analysis:

- AUD/USD upticks were rejected at 21-EMA

- Death Cross keeps upside limited

- Momentum is bearish, Stochs and RSI are sharply lower

- MACD is below zero, ADX supports weakness

- GMMA indicator shows major and minor trend are bearish

Major Support and Resistance Levels:

Support - 0.7307 (110-week EMA), Resistance - 0.7350 (5-DMA)

Summary: AUD/USD trades with a strong bearish bias. Break below 110-week EMA at 0.7307 will plummet prices. Next major bear target lies at 200-week MA at 0.7224.