The pair remains in red for the second straight day on Tuesday, following recovery rejection at 0.7560 last Friday.
Aussie was down in Asia on weaker than expected Australian retail sales data but managed to recover a part of losses after upbeat Chinese data (exports and imports strongly overshot forecasts in Apr while trade surplus widened).
Near-term outlook remains negative as falling 10SMA (currently at 0.7529) continues to cap and maintain pressure, together with falling thick 4-hr cloud and weakening momentum studies. Fresh weakness repeatedly probed below 0.75 psychological support (without firm break so far) keeping recent low at 0.7472 in focus.
Break here would generate strong signal for continuation of larger downtrend from 0.8135 (2018 high) and expose next support at 0.7370.
Markets are focusing on one of the key events this week, President Trump’s decision on whether to pull out from nuclear agreement with Iran, as US withdrawal from the deal would increase global uncertainty that could bring the greenback under pressure.
Break and close above 10SMA would be initial positive signal for AUDUSD, while lift above Friday’s recovery high at 0.7560 is needed to spark stronger recovery and open pivotal barrier at 0.7602 (Fibo 38.2% of 0.7812/0.7472 downleg).
Res: 0.7529, 0.7560, 0.7583, 0.7602
Sup: 0.7491, 0.7472, 0.7456, 0.7420
