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AUD/USD slips toward 0.6970 after failed hold above 0.7000
FXStreet says weak acceptance above 0.7000, plus fading optimism over US-Iran diplomacy, left the US dollar supported and trading cautious ahead of a two-day FOMC meeting.
AUD/USD extended selling into the Asian session on Tuesday, weakening toward 0.6970 after failing to secure acceptance above the 0.7000 psychological level the prior day, according to FXStreet.
The outlet cited fading optimism around potential US-Iran diplomacy after drone attacks were reported by Saudi Arabia, Jordan and Iraq on Monday, keeping a geopolitical risk premium in play and supporting the US dollar, a traditional safe haven.
FXStreet added that spot prices remain largely within a familiar two-week range and noted technical resistance around the 38.2% Fibonacci retracement of the May-June decline at 0.7024, with further upside levels mapped near 0.7073 and 0.7121.
Traders may avoid aggressive positioning ahead of a crucial two-day FOMC policy meeting, the outlet said, with recent repeated failures to clear the 38.2% Fibonacci level suggesting the recovery from the 200-day simple moving average has stalled.