The USD remains the strongest and the AUD is the weakest of the majors
The USD remains the strongest of the major currencies, while the AUD is the weakest. That puts the AUDUSD as the biggest mover.
The pair is currently trading down -0.37% on the day. It outpaces the USDCAD which has moved 0.22% (and is the 2nd largest % mover on the day).
Technically, looking at the hourly chart, the story was much different yesterday as the pair raced higher on the back of hopes for a stimulus deal and a more positive technical picture. The pair was able to get above its 100 day moving average at 0.7103, and race to and through its 200 hour moving average and 50% retracement near 0.7130.
However momentum could not be sustained as US stocks started to ease off toward the close, and buyers turned to sellers.
In the new trading day, the price has now breached below its 100 day moving average once again (at 0.7104). Stay below that moving average level keeps the sellers more in control. The next downside target will have traders looking toward the underside of the broken trend line at 0.7082 followed by the 100 hour moving average at 0.70786. A move below the 100 hour moving average would added to the bearish bias.
Yes, the run higher yesterday was impressive. However, today is a different story so far with levels are broken to the upside yesterday being rebroken to the downside today. That has traders battling for control.
I would give the nod more to sellers (the price below the 50%, the price is below the 200 hour moving average the price is below the 100 day moving average) with additional targets on the downside to get to and through to tilt the bias even more to the downside.
