AUD/USD is down by around 1% in trading today
The pair is keeping lower as the dollar is firmer in trading today amid the softer risk mood in the market, with European stocks and US futures pulling back by a decent bit.
That sees the pair fall to a low of 0.6906 earlier with the topside move earlier in the week running into key technical resistance around 0.7000 and the December high @ 0.7032.
The rejection there now brings into focus key near-term levels once again:
Notably, price action is now flirting with a potential firm break under the 200-hour MA (blue line) @ 0.6926. Break below that and sellers will seize back near-term control in the pair, with the bias being more neutral now (trapped between the key hourly MAs).
For buyers, defending this level will be an important step today before looking to try and get back above the 100-hour MA (red line).
From a technical perspective, further support is seen closer to the week's low near 0.6900 and then around the 3 June low @ 0.6857 next.
But it will still all boil down to market sentiment and for now, risk trades are on the softer side after the Fed but it can be seen as a mild retracement/profit-taking.
However, for AUD/USD, if sellers start to push the agenda and seize near-term control, it could pave the way for a more decent correction after the near unrelenting run higher since the middle of May.
For some context, the pair is still holding over 8% gains from the run higher since 18 May.
