Commodity currencies in general are suffering and AUDUSD is one of them
It's not been a clean break yet but 0.7200 is in trouble. The strong bids there are largely holding up and stops haven't been triggered yet. We also have the 1.03bn in options in play so that might be a factor too.
Should we drop through 0.7200 properly, the next main support I have is down at the May double bottom around 0.7140/45.
AUDUSD daily chart
Under there 0.7100 will be the next big support level and the trendline you see below there is from the 2008 low.
Near term resistance is around 0.7220 then 0.72445/50 and 0.7260.
To repeat recent warnings, this isn't a good time to get yourself heavily into large positions. We are in the midst of month/qtr/year end flows and well as potential position squaring. Those moves can seem like the trend or course for a pair is changing but they can be all wiped out (and more) when trading resumes in Jan. As is often the case, the bigger levels are probably best traded as a scalp unless it's part of an overall strategy.
