AUDUSD fall on risk aversion flows
The risk aversion trades helped to send the AUDUSD lower today. Also helping were technical moves.
Looking at the hourly chart, the price in the New York session yesterday fell below a trendline and the 100 hour moving average (blue line in the chart above currently at 0.69904). Those areas became a ceiling and when the news out of the Middle East was released, the pair started to trend more to the downside.
The next technical breaks came when the price fell below the 38.2% retracement of the move up from the December 17 low at 0.69574 and the 200 hour moving average (green line) which is currently at 0.6956.
The selling continued until the price finally found support buying near the 50% retracement at 0.69345 and the old ceiling from December 23rd, 24th and 26th at the 0.69291 level. Buyers leaned, and the price is correct higher.
The run higher did stall just ahead of the 200 hour moving average and the 38.2% retracement level at the 0.6956-57 area. That area will be a bias clue for traders going forward. Stay below keeps the sellers more in control. A move above should lead to more corrective probing to the upside (have to stay above though).
Taking a broader look at the daily chart, the low today did also stall at the swing highs from the end of October and early November at the 0.6929 area (the low reached 0.69297). So there was some good reasons for support buyers from the hourly chart and the daily chart technically. That increases the levels importance for both the dip buyers and sellers looking for more downside in the pair.
