AUD/USD Bears Back in Control Below 20 4Hr SMA
AUD/USD has been unable to continue in that minor recovery we witnessed over the last few sessions and was capped at the 0.74 handle.
AUD/USD has switched from oil related correlation to track industrial metals selling off. There hasn't otherwise been anything of real substance with a lack of data and the main attention was given in European trade to the BoE that offered limited bullish scope for the pound in light of the Brexit fears as we approach June and the EU referendum.
Meanwhile, we have had some Fed chat that has been pretty immaterial, although Fed's Rosengren has suggested that the likelihood of a rate hike is higher than the market is pricing in while the US economy continues to gradually improve.
AUD/USD is looking increasingly bearish again on the charts and a breach of the recent lows at 0.7302 from the 0.7830 sell-off would expose the mid-point of the 0.72 handle and former late Feb resistance. The pressure is on below the 20 sma on the 4hr stick at 0.7341, but a move higher could target the 200 sma on the same time frame at 0.7598 on a break of the 100 sma on the 4hr at 0.7550.