Search ForexCrunch
  • AUD/USD falls back to 100-DMA support, 50-DMA caps the upside.
  • US dollar gains further ground as risk-aversion deepens.
  • Traders await fresh cues for a break in either direction.

As the risk-off mood intensifies in the European session amid fresh lockdowns likely to be imposed in France and Germany, the safe-haven US dollar gains further ground against the higher-yielding assets such as the AUD.

Therefore, AUD/USD shaved-off early advance to near the 0.7160 region and fell back to the 100-daily moving average (DMA) support at 0.7110. Upbeat Australian Q3 CPI data fails to offer any respite to the AUD bulls.

The latest leg down caused the pair to pierce through the 21-DMA cushion, placed at 0.7138.

Sellers need an entry below the 100-DMA barrier, which continues to support the prices for last four trading sessions.

On the flip side, the aussie could retest the 21-DMA support-turned-resistance if the bulls fight back control.

The next critical resistance is seen at the horizontal 50-DMA at 0.7193.

The 14-day Relative Strength Index (RSI) trades flat on the midline, suggesting a lack of clear directional bias in the near-term.  

Markets await a strong catalyst for the major to break free from the weekly trading range.

AUD/USD: Daily chart

AUD/USD: Additional levels