Retraces to underside of broken trend line and 50% of days range.
The AUDUSD fell sharply on the back of a higher Australian unemployment rate released in the Asian/Pacific session. The full took the price below a trendline. The low price reached to the lowest level since September 4.
There has been a corrective move higher in the London/New York session. The price rise did move back up to retest the broken trend line. That trendline currently comes in at 0.6799 (just below the natural resistance at 0.6800). Stay below is more bearish.
On the downside the 50% retracement of the move up from the September low comes in at 0.67907. A move below that level should be more bearish for the pair.
Drilling down to the five minute chart below, the correction off the low today stalled just ahead of the 50% retracement (keeps sellers in control). The 100 bar MA on the five and chart comes in at 0.67938 currently (and moving higher). That moving average stalled fallls on the corrective move higher.
A move back below the 100 bar moving average should solicit more selling in the pair.
So the downside momentum in the AUDUSD has seen some pause. However, the correction was modest and if some technical support levels can be broken (i.e. at 100 bar moving average on the five minute chart and 50% retracement on the hourly), the sellers would add more control.
