FxWirePro: AUD/USD struggles at 50-DMA resistance, 'Doji' at highs raises scope for weakness

AUD/USD chart - Trading View 

AUD/USD trades range bound as we head into the European session, bias neutral.

Less dovish rhetoric from Fed speakers overnight helps US dollar recovery, weighing on the pair.

Fed’s Bullard on Tuesday said that the current US economic conditions do not warrant a 50 basis point rate cut in July. 

Further, Chairman Powell’s said the central bank is assessing whether a cut in borrowing costs is required.

The pair finds stiff resistance at 50-DMA at 0.6965. Upside fails to break above from the past 3 sessions.

Major trend remains bearish and U.S.-China trade spat keeps pressure. 'Doji' at highs raises scope for downside resumption.

21-EMA is immediate support at 0.6934. Break below with turn in 5-DMA will see dip till 0.6831 (June 18 low). Further weakness eyes 0.6785 (trendline).

Break above 50-DMA finds next major resistance at daily cloud. Bearish invalidation only above 200-DMA.

Recommendation: Watch out for break below 21-EMA to go short, target 0.6830/ 0.6785.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.