AUD/USD challenges key support level as sellers search for more downside momentum

AUD/USD is contesting a push below its 100-day moving average today

AUD/USD D1 24-03

With the dollar keeping firmer, AUD/USD sellers are pushing the agenda ahead of European morning trade with price now easing below its 100-day moving average (red line) @ 0.7614 and creeping just below the 0.7600 handle.

The former will be a key level to watch ahead of the close today as a break below that will see buyers lose the broadly more bullish bias in the pair on the daily chart.

That will then put added focus on the February lows @ 0.7564-83, with buyers needing to defend that in order to prevent a more profound technical breakdown.

Beyond that, further support is seen closer to 0.7500 and then the 200-day moving average (blue line) @ 0.7367 currently.

As much as this is looking like a broader dollar story (as seen the key technical pushes with EUR/USD, GBP/USD, and NZD/USD as well), the aussie also is facing some headwinds at the moment, albeit indirectly.

The continued pressure in Chinese stocks on the PBOC pulling short-term liquidity, depressing sentiment in Chinese assets and indirectly the aussie.


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