AUD/USD continues to fail to breach above the 200-hour moving average
Price has been knocking on the door of the 200-hour MA (blue line) since overnight trading as buyers are unable to secure a firm break above the level in order to establish a more bullish near-term bias in the pair.
That remains the key level to watch out for in the session ahead and as we look to wrap up the trading week. If buyers manage a break above that, we may see a more solid rebound in the pair towards 0.6900 once again.
The aussie has had a rough past few weeks against the dollar with the lows this week having even breached below the January flash crash low. However, the key point is that buyers managed to avoid a daily close below that level:
As such, that remains the key level for sellers to breach below in order to continue the run to the downside from hereon.
There is little left on the agenda to shake things up as we look to wrap up the week but the key factor still driving the pair is still yields. As such, keep an eye out on risk/trade developments and also any further RBA vs Fed rhetoric in the coming weeks.
I would argue that the path of least resistance remains for a move lower but after having posted 12 out of 14 daily losses before Wednesday, we are due for some retracement particularly as sellers lose momentum at the January flash crash low.
