With the dollar holding firmer so far today, AUD/USD is one that is worth watching with US futures also pointing lower at the moment. The pair is starting to crack under the pressure of a stronger dollar in February, continuing the downside momentum after the rejection from the August highs at 0.7143-46 at the start of the month.
Right now, we are seeing price fall below the trendline support (white line) as well as the 200-day moving average (blue line) - both seen in the region of 0.6800-16. That is inviting sellers to pile on the offers in search of a technical break lower. That said, there is still the 38.2 Fib retracement level of the swing higher since October at 0.6780 to deal with.
But if sellers can secure a daily break below that, it will be encouraging and a test of the 100-day moving average (red line) - now seen at 0.6725 - beckons next.
