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AUD/USD continues to slip below 0.7100

10/23/2018, 11:02:32 AMTrading Strategies
AUD/USD continues to slip below 0.7100

The AUD/USD took a step lower in Monday's trading as the Greenback sees a broad-market rebound, and the Aussie is slipping back to 0.7075.

This week's first half is a thinned-out affair, with little of note on the economic calendar, while the latter half will be seeing plenty of USD-focused figures and reports, leaving the AUD firmly in the passenger seat as Greenback traders determine the market's overall direction.

Metals prices are also on the rise, with iron ore costs on the rise on a bullish push for the Aussie, but overall Asia-Pacific markets remain constrained.

AUD/USD levels to watch

The Aussie is bedding back down towards 2018's lows, and as noted by FXStreet's own Valeri Bednarik: "the pair broke below the 23.6% retracement of its October's decline on the back of Wall Street's weakness, entering the Asian session a few pips below the level and with a short-term technical stance according to intraday technical readings. In the 4 hours chart, the pair was unable to advance above its 20 and 100 SMA, both heading lower around the 38.2% retracement of the same decline at around 0.7110, as technical indicators hold near daily lows, the RSI still heading south and the Momentum directionless. The key support from here is 0.7040, the yearly low, with a break below it opening doors for a continued decline toward the 0.6820 price zone."

Support levels: 0.7040 0.7000 0.6960

Resistance levels: 0.7110 0.7145 0.7170