Commodities continue to get hammered.
The AUDUSD started to pay more attention to the fall in commodity prices yesterday and is continuing that trend today. Yesterday the pair moved below the 100 and 200 hour MAs and 50% of the move up from the November 27th low.
Today, the price used the 200 hour MA as a ceiling early on and stepped lower. The pair is testing below the 100 day MA as I type.
This area should provide some cause for pause, but with Oil below $37 per barrel, Aluminum down nearly 2%, Iron ore down 1.21%, Copper down 1.19%, it has traders selling and asking questions later. The 0.71699 low from last week is the next target.
The pair has been trending and correcting to the 38.2-50% retracement. The current leg has that area at the 0.7199-0.7203 area. If that area can hold a correction, the sellers remain in control. A move above muddies the water a bit, but it is a long day ahead still and markets are nervous.
