AUD/USD continues to hug the two key hourly moving averages
Despite reports that trade tensions between US and China may escalate, it’s not really affecting the aussie on the day against the greenback. The aussie moved lower earlier in the session but the trendline support helped to limit the fall before price recovers to trade back around the 100 and 200-hour moving averages.
As price continues to hug the two key hourly moving averages, near-term price bias remains undefined. But as mentioned last week, the inability for buyers to hold any move above 0.7200 is a telling sign that the downside bias in the pair remains rather favourable still.
With the dollar index also holding above the 100-day MA, the greenback remains supported for the time being and sellers in AUD/USD will be keen to exploit further downside in the pair – particularly when fundamentals continue to work against the aussie.
Support– 0.7147 (trendline support)- 0.7125 (swing region)- 0.7100 (bids, swing region)- 0.7070 (October 2015 support)- 0.7015 (November 2015 support)
Resistance– 0.7200 (offers, swing region)- 07210-25 (swing region)- 0.7270 (61.8 retracement level of swing low from August)- 0.7300 (offers, swing region)