AUD/USD bears testing through to key support

AUD/USD is chipping away along the 0.7620 support area after heavy, risk-off, profit taking and losses overnight on end of quarter and month flows.

AUD/USD was forced lower again in an extension of the sell-off from yesterday's score through the 0.77 handle. The move started with markets getting shorter on the back of concerns about the health of Deutsche Bank.  "Bloomberg reported that some funds that clear derivatives trades with Deutsche Bank had withdrawn some excess cash and positions held at the bank," noted analysts at Westpac who have suggested that, "while further gains to around 0.77 in AUD/USD are possible during the month ahead, by year end, there’s a case for a correction towards 0.74 if the Fed tightens in December as we expect."

AUD/USD levels

AUD/USD's top at the converging range is currently located at 0.7718 while the 2016 uptrend is currently located at 0.7453 as a downside target. A close above 0.7718/35 would otherwise bring the 7836 April high into focus, as analysts at Commerzbank explained who argued that the 2016 support line at .7453/20 is a critical break down point to the 0.7146 May low. Meanwhile, with spot trading at 0.7627, we can see next resistance ahead at 0.7636 (Daily Open), 0.7638 (Daily High), 0.7655 (Hourly 100 SMA), 0.7656 (Hourly 20 EMA) and 0.7656 (Daily Classic PP). Support below can be found at 0.7625 (Hourly 200 SMA), 0.7624 (Daily Low), 0.7623 (Yesterday's Low), 0.7623 (Weekly Low) and 0.7604 (Daily 20 SMA).