AUDUSD breaking below moving averages

As the American dollar continues on its way up, investors are selling shares and riskier currencies like the Australian or New Zealand dollar. The AUDUSD pair bounced back from a multiyear inflection zone and is trading below its moving averages on the daily chart.

To retest the previous major high the course should climb above the 0.7840 (B) level, which would mean that the bulls still have some strength. Should the pair continue in its descent, the first support level would be around the 0.7620- 0.7560 area (A), which is sitting on the 38.2 Fibonacci retracement level. Further support level to halt the decline could be around the 78.6 Fibonacci level (0.7210) and the November low around 0.7000 (C), from where the latest ascent started. The Relative strength index is also showing a descending trend.