AUD/USD: Looking Correction on Monthly Base Downside towards Support $0.7240

• AUD/USD pair reached the level of 0.7700 Multi-Year.
• Dollar Reached multi-month support 89.30 
• Geopolitical issue: CHINA VS AUSTRALIA 

As expected, the AUD/USD pair reached the level of 0.77 and is currently trying to consolidate in this price area. Below 0.7740 Bearish toward support level 0.7640, 0.7520 and 0.7310 and 0.7200.

It should be noted that the AUD/USD pair is currently at multi-month highs: the last time the Australian dollar was at such levels was in March 2018. Prior to it, the Australian dollar reached three-year highs at the beginning of 2018 (January-February) Due to Covid not expecting higher from the current price, monthly base looking correction downside Along with $ strong.

Geopolitical issue: CHINA VS AUSTRALIA

China did not remain in debt. At the end of last year, it imposed restrictions on imports of Australian coal (the official reason is that Australian coal does not meet Chinese environmental standards). Before that, Beijing significantly increased customs duties on Australian wines, and also restricted the supply of two leading Australian suppliers of lamb. At the same time, Chinese customs authorities have suspended part of the Australian supply of beef and barley, saying that they do not meet the sanitary standards of the People's Republic of China.

So far, the Australian dollar has been relatively calm about the Australian-Chinese conflict. During periods of escalation, the indicated currency shows a corrective price decline, while the upward trend remains. In my opinion, the situation can seriously change at any moment if China focuses its attention on iron ore. This is mostly the only strategically important commodity for Australia that has not been affected by the interstate issue.

SUPPORT/RESISTANCE
✅S1= 0.7430
✅S2=0.7200
✴️R1=0.7740
✴️R2=0.7890