Technical Analysis

AUD/USD keeps near flat levels on the day, sellers still in near-term control

The price action today is very much a repeat of trading yesterday

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With US stocks continuing to show resilience to the unsettling coronavirus headlines in the country, it is making for some rather cautious and indecisive tones in the market.

That is seeing major currencies keep little changed to start the session today with the aussie not getting much direction in general since overnight trading.

For the case of AUD/USD, price action continues to linger under the key hourly moving averages @ 0.6889-00 and that is keeping sellers in near-term control.

However, any major downside stretch requires confirmation from the equities space and there isn’t much of that in trading yesterday, with US stocks even rallying in the final hour.

The risk mood today is more tepid as the focus turns back towards whether or not another round of pessimistic coronavirus headlines from big US states will finally tip the market, or perhaps investors may shrug that off and ignore the pessimism.

As such, expect the key focus in AUD/USD to center around the battle at its key hourly moving averages. Stay below and sellers remain in near-term control but break back above that and the 0.6900 level, then buyers will start to establish a more bullish bias.

As for further downside levels, support around the swing region at 0.6850-57 will be one to watch in case we do see sellers exert further pressure in the sessions ahead.

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