The 0.77/0.8470 rally in AUD/USD, which has unfolded over the last month, has retraced 23.6% as of this morning. That level comes in at 0.8288. The more widely focused upon 38.2% retracement is down at 0.8175.
Today’s slide has taken out the 10-day moving average at 83.46, the first time we’ve signficantly fallen below that average in the month-long rally. This suggests momentum in the rally is leaking badly and a sustained consolidation could be in store rather than a quick recovery to new highs.
0.8320/30 is solid resistance on rebounds intraday and may be a good place to trim stale longs.
