The AUDUSD has broken below channel trendline support (currently at the 1.0514 level) and is testing the 1.0502 floor. The 200 hour MA comes in not far below that floor at the 1.0494 level currently. With the trendline broken, traders will be using that level as the topside resistance in early NY trade. Failure to move above this level should keep the bias to the downside today. Another downside target would be the 38.2% retracement at the 1.0471 and the 100 hour MA/50% retracement at the 1.0445/1.0448.
Looking at the daily chart below, the price extension higher in the London session, extended the price above the topside channel trendline at the 1.0539 level. The failure to keep the momentum going above this level, disappointed the bulls and has helped contribute to the subsequent decline today. Should the price move back above the 1.0514 level, the 1.0539 level will be the next upside target for the pair.
