The AUD/USD is bucking the broader trend of a weaker U.S. dollar, with the pair moving lower (stronger USD). In its decline, the price has fallen back below a key swing area between 0.6287 and 0.6301, as well as the 38.2% retracement of the move down from the November 25 high. This area now acts as resistance, and staying below it would keep sellers in control.
On the downside, momentum targets include:
- 0.6274
- 0.6264
- 200-hour moving average at 0.6251
The 200-hour MA has been a key technical level, with the price moving above it on January 20 and steadily climbing since. A break back below this moving average would signal a potential shift in sentiment and open the door for further downside.
Traders should monitor the resistance area at 0.6287–0.6301 and the 200-hour MA for clues on the next directional move.
This article was written by Greg Michalowski at www.forexlive.com. Source