AUD/USD: fragile on 0.74 handle, testing the 1hr 200 sma

Currently, AUD/USD is trading at 0.7452, down -0.36% on the day, having posted a daily high at 0.7510 and low at 0.7429.

AUD/USD has started to stabalise the sell-off from the double top just above 0.75 the figure, an area of long-term resistance and a fibo level that the market has failed to penetrate with any great conviction. The Aussie trade balance did not do the RBA's job any justice and points to a bad start for the GDP Q4 data on the heels of this week's contraction on the data for Q3.

Tapering not on sight – ECB’s M.Draghi

The price is testing back up through the 200 sma on the 1hr sticks, yet had the recent data not had been so poor, one might wonder whether the Aussie could have got a sustained bid on the carry trade status given today's ECB dovishness and underpinning the euros funding currency status for the foreseeable future.

AUD/USD levels

Spot is presently trading at 0.7453, and next resistance can be seen at 0.7456 (Hourly 100 SMA), 0.7461 (Daily Classic PP), 0.7472 (Hourly 20 EMA), 0.7476 (Daily 20 SMA) and 0.7480 (Daily Open). Next support to the downside can be found at 0.7449 (Hourly 200 SMA), 0.7440 (Weekly Classic PP), 0.7436 (Daily Classic S1), 0.7429 (Daily Low) and 0.7419 (Weekly Low).  On a break below the 0.74 handle, we have the 0.7312/10 mid June lows and the 78.6% Fibonacci retracement at 0.7287/81 as next key levels ahead of the May low at 0.7146 before the 0.6828 January low.