#AUDUSD @ 0.69109 -imp levels: reverses an intraday dip to a two-week low, though lacks follow-through.

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• AUD/USD reverses an intraday dip to a two-week low, though lacks follow-through.
• Hawkish Fed expectations, recession fears underpin the USD and should cap gains.
• Acceptance below the 50 DMA supports prospects for a further depreciating move.

The pair currently trades last at 0.69109.

The previous day high was 0.7021 while the previous day low was 0.6892. The daily 38.2% Fib levels comes at 0.6941, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6972, expected to provide resistance.

The AUD/USD pair stages a modest bounce from a two-week low touched earlier this Friday and moves back above the 0.6900 mark during the early European session. The pair is currently placed near the top end of its daily trading range, though any meaningful upside seems elusive and the attempted recovery runs the risk of fizzling out rather quickly.

Growing worries about a global economic downturn continue exerting downward pressure on commodity prices, which, along with a softer risk tone, might act as a headwind for the risk-sensitive aussie. Apart from this, the prevalent bullish sentiment surrounding the US dollar, bolstered by hawkish Fed expectations, should further contribute to keeping a lid on the AUD/USD pair.

The recent hawkish remarks by several Fed officials and the incoming positive economic data reaffirm market speculations that the US central bank would stick to its policy tightening path. This, in turn, pushes the yield on the benchmark 10-year US government bond back closer to the 3.0% threshold and remains supportive of the ongoing USD positive move to a one-month high.

The fundamental backdrop suggests that the path of least resistance for the AUD/USD pair is to the downside. Even from a technical perspective, the overnight break below the 50-day SMA could be seen as a fresh trigger for bearish traders. Hence, any subsequent strength might still be seen as a selling opportunity amid absent relevant market-moving economic releases from the US.

Nevertheless, the AUD/USD pair remains on track to register heavy weekly losses. Bearish traders, however, might wait for some follow-through selling below the monthly low, around the 0.6870 region, before positioning for any further losses.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6908 at the time of writing. Pair opened at 0.6918 and is trading with a change of -0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6985, 50 SMA 0.6923, 100 SMA @ 0.7063 and 200 SMA @ 0.7144.

The previous day high was 0.7021 while the previous day low was 0.6892. The daily 38.2% Fib levels comes at 0.6941, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6972, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6866, 0.6814, 0.6737
• Pivot resistance is noted at 0.6996, 0.7073, 0.7125

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