The aussie put up a decent defense towards the end of last year, holding on amid a test of its 100-day moving average (red line) before pushing higher amid the year-end trading period. But all of that is being unwound now as the dollar catches a strong bid across the board in European morning trade, with AUD/USD now down 0.9% to 0.6940 on the day.
The pair also ran into a trendline resistance (white line) with the 200-day moving average (blue line) also helping to limit any upside momentum over the past month or so.
Now, sellers are looking to turn things around and seize near-term control before targeting another attempt at the 100-day moving average potentially. Here is a look at the hourly chart for context:
A fall back under the 200-hour moving average (blue line) will see the near-term bias turn more bearish and that will give sellers some added momentum in chasing a further downside push to start the new year.
