AUD/USD is trading lower but not extending to the downside so far today
The pair backed off after an attempt to hold a break above 0.6200 in overnight trading, with the late fall in US stocks also not helping the aussie as the risk mood softened.
That is also extending into sentiment today, after euro area finance ministers failed to agree on a bailout deal earlier and that is keeping risk more tepid while the dollar continues to stay more bid since Asia Pacific trading.
The downside move today encountered a stall from support at the 38.2 retracement level @ 0.6121 as price action is consolidating around 0.6130-50 currently.
The bigger technical levels to watch out for in the near-term will be the key hourly moving averages at 0.6083 and 0.6103 respectively.
For buyers, the key is to hold above that to maintain a more bullish near-term bias while for sellers, a break below those levels will see the bearish momentum extend.
At the start of the week, there was the general feeling of letting the risk rally run its course but after the late stumble yesterday in US trading, it looks like sellers are starting to come back into the picture to reclaim the driver's seat.
As such, the dollar stands to be benefit if risk continues to stutter towards the second-half of the week and in turn, the aussie will also slump further. The key near-term technical levels above will be the ones to watch for a significant turn in the tide.
The risk to any downside move is a push back above the 23.6 retracement level @ 0.6154 and a trip back to revisit to 0.6200 handle once again.
