Back below 100 hour MA
The AUDUSD is trading at the day lows after a volatile trading day.
The pair moved sharply lower after poor retail sales and trade data out of Australia last night (Retail sales came in at 0.0% vs 0.3% estimate. Trade deficit was the worst on record but was influenced by port closings due to severe weather). The pair then recovered during the early European session, only to tumble to fresh day lows n the New York session.
The price has moved down to test the low corrective price after the RBA decision on Tuesday (RBA did not give an explicit easing bias). The low is also near high levels from Friday and Monday's trade (see blue numbered circles in the chart below). This has slowed the decline for the time being. Resistance will now come in against the 100 hour moving average (blue line in the chart below), which currently comes in at the 0.7703 level.
Looking at the 5 minute chart, the price, there is a strong case for a strong bearish line in the sand a the 0.7704-17 area. The 100 and 200 hour MA are at those levels as are a number of lows from earlier. The 38.2-50% of the last trend leg lower is also here.
