AUD/USD trades below 0.7000 as weaker PMI data weighs on the aussie
With price failing to hold above 0.7000, it is pointing to further exhaustion among buyers after the recent upside move towards highs seen last week. The fact that price fell below both key hourly moving averages already points to that but a firm break below 0.7000 will just reaffirm that sellers are starting to regain more control.
The risk for sellers now is holding price below the 0.7000 handle and keeping price action below the key hourly moving averages. That will allow for added conviction to chase a downside move further from current levels.
Of note, price is now heading towards a test of the 61.8 retracement level @ 0.6976. But looking at the bigger picture:
There is key daily resistance from the recent trendline support around 0.6960. That will be a key spot to watch as sellers look for a further move to the downside. A fall below that will give added confidence for price to head lower towards the 10 July low @ 0.6911.