The bounce today comes as the overall risk mood in markets is also searching for a bit of a respite. S&P 500 futures are now up 0.5%, as equities look to a calmer end to the week. At the same time, AUD/USD is also staving off a drop below the 61.8 Fib retracement level at 0.6529 for now.
In the bigger picture, sellers remain in control and this is just a minor relief thus far. It will take a lot more on the part of buyers to convince of a turnaround in the recent selling pressure. That will also have to come alongside a better showing in risk trades in broader markets.
The near-term chart lays out the challenge for buyers as well, with the 100-hour moving average only seen at 0.6599. That is seen closer to the range of the key moving averages on the daily chart above, seen at the 0.6586-05 region. As such, keep below that and sellers will stay firmly in control of the pair.
That is the limiting scope for any rebound we’ll be seeing in the near-term. So, the onus is on buyers to break back above that in order to reestablish some semblance of control.
This article was written by Justin Low at www.forexlive.com.
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