AUD/USD seesaws around seven-week low, snaps two-day downtrend. The price fell on Monday from 0.7273 to a new low of 0.7221. the A$ should remain under modest pressure given further weakness in Chinese steel prices/ super weak October steel production data, the continued slide in coal markets, the more dovish RBA Governor’s speech to the ABE last week. A test down to the 0.7170/ 0.7220 region remains the next objective while gains will be capped by the 0.7290/ 0.7310 region.
=> These are still supportive signals for the bears if the price continues to hold below 0.7310. However, the current support area is quite wide, making the risk level for sellers to be pushed higher, the short-term target will be around 0.7150-0.7160.
=> Meanwhile, the bulls will be challenged by the 0.7290-0.7310 resistance area. If this zone is broken, then 0.7400 is likely to be the next target.
=> These are still supportive signals for the bears if the price continues to hold below 0.7310. However, the current support area is quite wide, making the risk level for sellers to be pushed higher, the short-term target will be around 0.7150-0.7160.
=> Meanwhile, the bulls will be challenged by the 0.7290-0.7310 resistance area. If this zone is broken, then 0.7400 is likely to be the next target.