AUDUSD slides further as Fed rate hike hopes continue to boost dollar

Steep bear-leg from 0.7000 zone extends into second consecutive day and hits the lowest levels since early April, as the Aussie dollar came under increased pressure from stronger dollar, driven by expectations that Fed may start tightening its monetary policy as early as September.

Fresh fall in metal prices also contributed to pair’s accelerating losses (AUDUSD was down 2.2% from Tuesday’s opening until early US session on Wednesday.

Bears eye targets at 0.6853 (200DMA) and 0.6833 (Mar 30 higher low), but may face headwinds, as daily studies are oversold.

Positioning for fresh push lower would be likely near-term scenario, with broken Fibo support at 0.6950 (38.2% of 0.6421/0.7277 rally) to cap upticks and keep larger bears intact.

Violation of 0.6833 pivot to generate initial signal of reversal and open way for deeper correction of larger 0.5914/0.7277 uptrend.

Res: 0.6950; 0.7000; 0.7056; 0.7075
Sup: 0.6853; 0.6833; 0.6800; 0.6756