The AUD/USD pair has closed below the 62 day moving average on a daily chart, and has now retraced 76.4% of price action since July 24. The close below the 62 Day EMA is substantial as it can be seen as confirmation of a longer term trend. Price has been bullish in Asian trading so far, but with a well established resistance zone above at 1.0335, it is possible that we will see bearish momentum return before the markets close later today. Yesterday's action came to a halt at the Weekly S2 of 1.02710 more or less with the low being 1.0276. The next major support zone is the Monthly S1 at 1.0207, a zone that on a weekly line chart we can see several closes. This will potentially be a bounce level for the pair. The momentum being strongly bearish, it is likely that we will see the 1.016 level before a trend reversal happens...if it happens anytime soon at least. To the upside we have resistance in the form of the Weekly S1 but more importantly the Monthly Pivot that sits at 1.03728 currently. With such a strong close below this level, combined with the close below the 62 DMA the bears seem to be in full control, at least for now.
Happy Trading!