AUD/USD is down by 0.5% to 0.6560 levels so far today
The pair went in search of a break above the 0.6600 handle in overnight trading but fell back slightly to close below the figure level. The push higher continued amid yet another rally in US stocks but as we see softer risk tones today, the pair is slipping a little as well.
The low today touched 0.6549 but overall the moves aren't suggestive of anything major.
For buyers, the upside momentum remains largely intact with price action keeping above the 100-day MA (red line) @ 0.6499 and also the key hourly moving averages at 0.6493 (200-hour) and 0.6516 (100-hour) respectively.
The confluence of these levels will be the key risk levels to watch in the event the downside move so far today extends further.
Meanwhile, the next key push to the upside requires a break and hold above 0.6600 before looking towards the 200-day MA (blue line) @ 0.6662.
The AUD/USD chart draws a lot of resemblance to the S&P 500 and as the latter runs into some resistance from its key daily moving averages, that may perhaps also hinder the move higher in the former for the time being.
As such, continue to keep an eye on equities sentiment as it is still the main driver in the market this week.
