AUD/USD chart on Trading View used for analysis
- AUD/USD is trading 0.58% lower on the day at 0.7096 at 0720 GMT.
- Aussie is being offered in response to NAB's decision to hike home loan rates.
- Investors wary the the mortgage rate hikes by major lenders could force the RBA to cut rates this year.
- The pair is extending downside after rejection at daily cloud. Price action has slipped below 20-DMA support raising scope for further downside.
- Technical studies on daily charts have turned bearish, RSI is now biased south and Stochs have rolled over from overbought levels.
Support levels - 0.71, 0.7021 (Oct 26 low), 0.70
Resistance levels - 0.7125 (20-DMA), 0.7135 (5-DMA), 0.7207 (cloud base)
Recommendation: Stay short on close below 20-DMA, SL: 0.7135, TP: 0.71/ 0.7025
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
