AUDUSD falls below a key support as risk-off flows dominate | Forexlive

On the 4 hour chart below, we can see that the AUDUSD pair just fell below a key support zone around the 0.6260 level which has been holding since March 10th. The sellers are likely to pile in with a defined risk above the broken zone to position for a drop into the March 4th low at 0.6186. The buyers, on the other hand, will need to see the price rising back above the broken support and especially the downward trendline to regain control and start targeting the 0.64 handle.

On the 1 hour chart below, we can see more closely the break below the support and we can notice that there’s still some room before hitting the lower bound of the average daily range. This is a sellers market for now as traders will likely err on the cautious side heading into the April 2 event. After the US plan unveiling traders will reasses.