AUDUSD tests the 38.2% retracement of the move up from the December 21 low

The AUDUSD – like other US pairs – is trending to the downside with the momentum accelerating over the last few hours of trading as stocks moved to the downside and the dollar runs higher (gold is moving sharply lower as well). 

The fall has taken the price down to test the 38.2% retracement of the move up from the December 21 low. That retracement level comes in at 0.76826. The low price just reached 0.76806 and are seeing a modest bounce.  A move below the 38.2% retracement would next target the low for the week at 0.7665.

On a corrective run higher watch the 0.77079 to 0.77162 area as a resistance. That represents the 38.2 % retracement to 50% of the last trend leg lower in the pair (see yellow area in the 5 minutes chart below).

AUDUSD on the 5 minutes chart



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