FxWirePro: AUD/USD opens the week on a bearish note, tests fresh four-month low at 0.7003

Chart - Courtesy Trading View 

Technical Analysis:

AUD/USD was trading 0.83% lower on the day at 0.7011 at around 03:55 GMT.

The pair has opened the week on a bearish note after 'Gravestone Doji' formation in the previous week.

Volatility is high and momentum is strongly bearish, further weakness on cards.

GMMA indicator shows major and minor trend are bearish on the daily charts.

Fundamental Overview:

Inflation fears and hopes of aggressive Fed rate hikes keep the US Treasury yields buoyed.  

Further, the US dollar safe-haven appeal amid fears of worsening covid woes in China and the global leaders’ sanctions on Russia keep USD/JPY on the front foot.

Markets await China Trade Balance data for further impetus. 

Major Support Levels:

S1: 0.6967 (Jan 28 low)

S2: 0.6926 (Lower BB)

Major Resistance Levels: 

R1: 0.7113 (200H MA)

R2: 0.7206 (21-EMA)

Summary: AUD/USD trades with a strong bearish bias. Scope for fresh yearly lows below 0.6967.