AUD/USD slips further on the day, sellers start to seize near-term control

Technical Analysis

Author: Justin Low | audusd

AUD/USD is down 0.5% to a low of 0.6928

AUD/USD H1 10-07
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The more defensive risk tone is continuing to reverberate in the market to start the day, with the dollar and yen staying more bid ahead of European trading.

Asian equities are marked lower and not helped by a decline in US futures as well, putting risk currencies like the aussie and kiwi under pressure for the time being.

For AUD/USD, price is now breaking under its 200-hour MA (blue line) @ 0.6938 and that is seeing sellers start to seize more near-term control in the pair.

Hold a firm break below and the near-term bias turns more bearish though there is some support seen close by at the swing region around 0.6922-27 this week.

That will be an area to watch in the session ahead before getting towards the 0.6900 handle potentially as sellers look to push the agenda on a break below the 200-hour MA.

Looking ahead, there is little on the agenda in Europe to shift the dial so be mindful that the risk mood is still the key driver of trading sentiment at the moment.

We'll have to see if risk sellers have enough conviction to chase a risk-off move further or if they will be waiting on US trading once again.

I would argue that Wall Street will still have the final say though.

It has been a really choppy trading week for the most part and that is also exemplified by the trading range in AUD/USD between 0.6922 to 0.7000 over the last four days.

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