AUD/USD battles back to test key near-term levels

Technical Analysis

Author: Justin Low | audusd

AUD/USD runs into a test of the 100-hour moving average now

AUD/USD H1 12-05
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The aussie is paring losses in early European morning trade, as we see AUD/USD move off earlier lows of 0.6432 to test the 100-hour MA (red line) @ 0.6482 currently.

This will be a key battleground to watch as a break above that will put buyers back in control, although resistance around 0.6500 is still limiting gains since overnight trade.

Keep below the 100-hour MA, sellers have some room to maneuver as they will have to work back towards a break under the 200-hour MA (blue line) @ 0.6467 to re-establish a more bearish near-term bias in the pair.

China has fired the first shot at Australia on trying to meddle with coronavirus affairs - they have been warning about this for weeks now - and that is partly weighing on the aussie.

The softer risk mood is also another factor but we are seeing US futures move off the lows for the day as well. S&P 500 futures are now down by just 0.3% after having seen over 0.8% losses earlier in Asia Pacific trading.

In turn, that is also helping the aussie to regain some momentum as seen above.

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