The USD is higher today, and the AUD is not missing that trend. The pair is down for two consecutive days this week. Fears of lower China growth is also an influence in the downward trend. Technicals are also playing a role.
Technically, the price yesterday moved below a key floor area at 0.66758 (see video above). The momentum continued through the 61.8% retracement 0.66567 and the swing lows from last week and from the employment Friday on January 5 (at 0.6640).
The low price reached a new session lower over the last hour at 0.6590. That is taking the price closer to its 200-day moving average at 0.65811. The last time the price traded below its 200-day moving average was back on December 13 at 0.6586. The low price today again has reached 0.6590 with the 200-day moving average at 0.65811.
Will buyers come in against that level?
Risk can be defined and limited against that level. As a result, I would not be surprised to see risk focused buyers leaning against the moving average on the first test with a stop on a break below. Be aware.
This article was written by Greg Michalowski at www.forexlive.com. Source