AUD/USD keeps above key near-term levels but buyers lack poise to break higher

AUD/USD sits above the key hourly moving averages for now


The focus in the pair returns back to near-term levels as we see price action play a bit of ping pong between minor resistance regions and the key hourly moving averages.

For the time being, buyers are keeping the more bullish near-term bias by fending off any tests of the key hourly moving averages, now around 0.6717-20.

However, at the same time, they are lacking conviction to chase a move higher with yesterday’s high limited by the trendline resistance – today seen @ 0.6743. Further resistance is seen around 0.6750-54 next before the 5 February high @ 0.6774 comes into play.

Looking ahead today, it is all about the risk mood in trying to get a sense of which direction price will look to break. The mood to start the European morning remains tepid as the market continues to grapple with the coronavirus outbreak situation.

We have seen three Fridays in a row of risk aversion, will today be the fourth? If so, a break back below the key hourly moving averages will spell trouble for the aussie as it brings back a possible retest below 0.6700 again.