AUD/USD eases lower as October upside push starts to lose momentum

AUD/USD slips below both its key hourly moving averages on the day

The pair is down 0.4% to below 0.7500 currently but more notably, price is falling below both its 100 and 200-hour moving averages for the first time since early October:

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There have been several tests of the key near-term levels above last week but buyers have generally held on. However, today's dip could have more significant technical reverberations should the fundamental picture corroborate as well.

Looking at the daily chart:

The stall in the upside run during October is coming at the 200-day moving average (blue line) so that's a key line in the sand that buyers must cross to extend any further upside momentum moving forward.

But looking ahead this week, the RBA and Fed are two key variables to consider and depending on the messages from both central banks, there will be significant consequences for both the aussie and dollar potentially.

As such, the technicals may offer up some bias now but until we get clarity from what the central banks are going to say/do, it is a guessing game right now.

But at least we can define and limit risks on both sides of the coin. As for any further downside, there is some minor support around 0.7460-80 with the 23.6 retracement level also sitting in between that at 0.7464.

November 01, 2021 at 08:16PM
Justin Low
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