The pair is now testing key support levels for the year
I talked a bit on the pair having further downside earlier in the week, and we've reached its potential pivot point here.
From the daily chart, the pair hit a double-top as we got the week going and the aussie weakness has accelerated the move towards the downside throughout the last few days. Either way, we're now leaning against key support levels for the pair.
The low from last December around 1.0864 has been one that has held on two other occasions this year before we saw a bounce back up to 1.1000 levels. Incidentally, you can say that rejection at the 1.1058 level (50.0 retracement) and 1.1003 level (61.8 retracement) has seen the pair hit a bottom near support at 1.0864 only to bounce back up again.
Yesterday, the pair touched below 1.0864 only to bounce back up after the 200-day MA provided some support for buyers to lean on. Today looks to be a similar case as that will be the battleground for price action.
If buyers fail to hold here, expect the downtrend continuation to be a sharp one.
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