AUDUSD Looks Set For a Retest of Lows

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The Aussie dollar was seen trading lower against the US dollar during the Asian session. There was an important support area in AUDUSD around the 0.7640, which was cleared by the Aussie dollar sellers. The RBA meeting minutes were also released during the Asian session, which failed to help the Aussie dollar and in turn caused a minor downside reaction. In the US, the total Net TIC Flows was released by the US Department of Treasury, which is Treasury International Capital and means in and out flows of financial resources in the United States. The outcome was on the higher side with a reading of $88.3B. This also helped the US dollar in the short term.

There was a minor bullish trend line formed on the hourly chart of the AUDUSD pair, which was breached by sellers. This particular break might be considered as a bearish sign, as it has opened the doors for a move towards the last low of 0.7560. The pair is now trading below the 100 and 200 hour MA, which is also a negative sign. If the AUDUSD pair continues to trade lower, then it might test the 0.7580 level, followed by 0.7560. However, the 0.7600 support area might also come into play in the near term for the pair. The hourly RSI is below the 50 level suggesting weakness in the pair.

AUDUSD 03.17.2015

If the AUDUSD pair moves back higher, then the broken trend line might act as a resistance. A break above the 0.7640 level might call for more gains.

Overall, one might consider selling rallies in the AUDUSD pair as long as it stays below the broken trend line.

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