AUD/USD turns negative, eyeing 0.7200 mark to extend support

By FXStreet The AUD/USD pair failed to extend its tepid recovery back towards 200-day SMA and the bears took back the control, dragging the pair back into negative territory.

Currently the pair is trading with a modest cut at session through level of 0.7220. Looming concerns of the June Fed rate-hike has been exerting pressure on commodities and commodity-linked currencies like the Australian Dollar.

However, thin liquidity conditions ahead of a weekend and risk-on sentiment surrounding global equities might restrict any sharp down-slide. Moreover, with only the release of existing home sales data from the US, trader would be reluctant initiate fresh positions or carry on their positions over the weekend. The data, however, might trigger some intra-day tradable moves.

Technical outlook

Slobodan Drvenica, Information & Analysis Manager Windsor Brokers Ltd. expects, “persisting downside pressure while 200SMA caps. Only sustained break above 200SMA would signal stronger upside action and expose further strong barriers at 0.7287 (daily Tenkan-sen) and 0.7353 (daily Ichimoku cloud base), break of which will confirm correction.”
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Source:: FX Street