FxWirePro: AUD/USD rejected at 21-EMA, firmer US dollar and risk-off market sentiment drag the pair lower

AUD/USD chart - Trading View 

Spot Analysis:

AUD/USD was trading 0.17% lower on the day at 0.7340 at around 10:30 GMT

Previous Week's High/ Low: 0.7426/ 0.7329

Previous Session's High/ Low: 0.7406/ 0.7346

Fundamental Overview:

COVID-19 jitters overshadowed stronger Chinese inflation figures and China's export slowdown adds to bearish pressure.

A stellar US monthly jobs report fueled speculations that the Fed could begin taper later this year boosting the US dollar.

Falling Iron ore and copper prices also keep the Aussie supressed.

Technical Analysis:

- AUD/USD recovery attempts rejected at 21-EMA

- MACD is well below zero, ADX supports downside

- Death Cross on the daily charts keeps bearish pressure

- Momentum indicators are bearish and volatility is high

Major Support and Resistance Levels:

Support - 0.7307 (110-week EMA), Resistance - 0.7376 (200H MA)

Summary: AUD/USD is trading with a bearish bias. Risk-off, falling commodity prices and U.S. dollar strength are likely to drag the pair lower. 

110-week EMA is major support at 0.7307, watch out for break below to see further downside. Next major support lies at 200-week MA at 0.7224.