Commodities are moving lower as is the AUDUSD. Tests support.
As commodity prices go, so do the commodity currencies like the AUDUSD and the NZDUSD.
From a technical perspective, the AUDUSD moved below the 100 and 200 hour moving averages today ( 100 hour is currently at 0.8079 and the 200 hour is at 0.8034) and is testing the 61.8% retracement support at the 0.7983 level currently. A break of this level will make the AUDUSD look more bearish with a move toward 0.7826 the next target level.
Looking at the daily chart, a more bearish short term, could accelerate the downside potential for the pair.
The AUDUSD price was not able to move above the high reached on June 3rd (0.8262) on the last move higher last week (0.8236). This is not a positive development. The move today below the 100 and 200 hour moving average also gives the go ahead for profit takers and new sellers to enter the market against these levels on corrective moves.
The trade becomes as long as the price can remain below the 100 and 200 hour moving averages going forward, the downside correction is preferred. The target from the daily chart could see the pair move all the way down to the 0.7492 level which is the 38.2% retracement of the move up from the February 2nd low of 0.6247 to the June 3rd high of 0.8262 (see chart above).
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