• AUD/USD is on the front side of the bear trend, potentially leading to a bearish start to the week. 
• AUD/USD bears lurking below the Fibo scale. 

As per the prior analysis, AUD/USD Price Analysis: Bears in the market, chipping away into key support, where the focus was on the downside, we have indeed seen a deeper move into support.

AUD/USD prior support

There is an emphasis on the downside for the meanwhile on the lower time frames:

Zoomed in, we could see that AUD/USD had left an M-formation on the 4-hour chart. A correction into the neckline would meet a 38.2% Fibonacci of the prior bearish leg.

Either way, below there, the bias was to the downside for a deeper test into the support area. 0.6725 is an upside resistance that guards a continuation higher subsequent of the bullish breakout. 

AUD/USD update

The price action followed the forecasted trajectory as illustrated above. 

With the recent break of the structure of 0.6650, there is a bias to the downside still while on the front side of the bear trendline.

The European Union´s foreign minister Josep Borrell said that Belarus hosting Russian nuclear weapons would mean an irresponsible escalation and a threat to European security.

He said Belarus can still stop it, it is their choice but the EU stands ready to respond with further sanctions.

• Putin: Russia plans to station tactical nuclear weapons in Belarus

Reuters reported that Minneapolis Fed president Neel Kashkari was speaking on Sunday in comments to CBS show Face the Nation.

´´Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. It definitely brings us closer," Kashkari said.

"What's unclear for us is how much of these banking stresses are leading to a widespread credit crunch. That credit crunch ... would then slow down the economy. This is something we are monitoring very, very closely."

US Dollar update

The US Dollar rose on Friday as banking stocks plunged in Europe with heavyweights Deutsche Bank and UBS Group pummelled by worries that the worst problems to hit the sector since the 2008 financial crisis have not yet been contained. The dollar index, or DXY, rose 0.51% ands printed a high at 103.350,

Isabel Schnabel, Member of the ECB's Executive Board, crossed the wires and has said headline inflation has begun to decrease although said core inflation remains sticky.

She added that energy contributions are declining quickly yet financial turbulence has notable effects on markets.

EUR/USD update

The euro fell sharply against a strengthening US Dollar on Friday amid lingering nervousness over banks.

Banking stocks plunged in Europe with heavyweights Deutsche Bank and UBS Group pummelled by worries that the worst problems to hit the sector since the 2008 financial crisis have not yet been contained. EUR/USD was down 0.71% to 1.0753.

´´With so much tension gathering in the banking sector we are reluctant to alter our call that the USD may yet see further strength in the coming weeks on the back of safe haven demand,´´ analysts at Rabobank argued. ´´We still forecast at EUR/USD1.05 in 3 months, though we have tweaked our 6 to 12 mth EUR/USD forecasts.´´

President Vladimir Putin said Saturday that Russia plans to station tactical nuclear weapons in neighboring Belarus.

A special storage facility for tactical nuclear weapons in Belarus is to be built and installed by the beginning of July, Putin told state broadcaster Russia 1.

Putin said Russia had helped Belarus convert 10 aircraft to make them capable of carrying tactical nuclear warheads and would start training pilots to fly the re-configured planes early next month. 

Putin said that the placement of nuclear weapons in Belarus will not violate nuclear non-proliferation accords.

´´We're not transferring our nuclear weapons to Belarus but will station them there, like the US does in Europe.´´

´´We have found no reason to change our own strategic nuclear posture, nor have we seen any signals that Russia is planning to use a nuclear weapon,´´ the US Department of Defense said in a statement. 

In prior communications, Washington made clear to Putin that there will be consequences to any use of nuclear weapons in Ukraine.