AUD/USD a little lower on risk struggles, but sellers have more work to do

Technical Analysis

Author: Justin Low | audusd

AUD/USD touches a low of 0.6921 amid a slight dent to the risk mood in early trading but isn't running anywhere just yet

AUD/USD H1 14-07
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Risk continues to keep more defensive to start the session with European equities still seeing losses of around 1.5% to 2.0% currently. Meanwhile, US futures cancelled out some minor gains on the back of this report here and is keeping flatter at the moment.

The dollar is mildly firmer across the board but there isn't any major extension that is taking out key technical levels just yet. Cable is back under its 200-hour moving average but support around 1.2500-10 is holding for now.

As for AUD/USD, the nudge lower saw price action touch a low of 0.6921 but support around the region of 0.6922-27 is still largely keeping things in-check for now.

The high earlier today touched 0.6954 but sellers leaned on the 200-hour MA (blue line) to keep the near-term momentum on their side. As such, that will be a key near-term level to watch in case for any potential upside extension later in the day.

As for downside momentum, sellers have more work to do in order to try and build on something more significant. Price action since the start of last week is largely trapped between support at 0.6922-27 and resistance at around 0.6990-00.

That remains the range play for AUD/USD at the moment and eventually, something's gotta give and that will provide firmer direction for which way the pair might trend.

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