Midpoint of the years trading range comes in at 0.7330
The AUDUSD is down testing the 50% midpoint of the low to high trading range for the pair. That level comes in at 0.73303. The low is at 0.7329.
The 50% retracement should provide a level of support where profit takers lighten up, new buyers stick a toe in the water. However it is Friday and traders are less inclined to get involved with new positions on fear of a gap lower over the weekend. The pair has been trending lower since peaking at on November 8th (election day). The move down has need the price move below the 100 and 200 day MA, trend line support, and the 38.2% retracement. Traders looking to trade the NY Friday afternoon session can lean against the level but understand that gains may be limited.
Looking at the hourly chart below, the technical picture is more bearish as the flatter trend line was broken (need to get back above it now - see red circles). However the steeper lower channel trend line was tested at the low for the day. So it is a pretty good support/risk defining level (see blue circles in the chart below) for a trade. If there is a bounce, we could see a retest of the upper trend line. It depends on the Friday Flows and it is more likely we have some congestion at the 0.7365 area before reaching that line.
