Hey Traders, in today’s trading session we are monitoring AUDUSD for a selling opportunity around the 0.69000 zone. AUDUSD is trading in a downtrend and currently is in a correction phase in which price is approaching the trendline resistance around the 0.69000 support and resistance area.
From the macro side, the US Dollar remains strongly bid across the board, supported by safe-haven flows as Middle East tensions continue to fuel risk aversion in global markets. The sharp surge in oil prices and rising US Treasury yields are keeping the market in a risk-off environment, which is negative for risk-sensitive currencies like the Australian Dollar.
In addition, the Australian Dollar is facing extra pressure from slower China demand concerns and weaker global growth sentiment, both of which typically weigh on commodity-linked currencies. With traders also positioning ahead of this week’s major US data releases, including ISM and Nonfarm Payrolls, the USD could stay supported and continue pushing AUDUSD lower.
As long as price remains below the 0.69000 resistance zone, the bearish trend structure remains valid, and we anticipate a continuation move toward lower support levels.
Trade safe, Joe.