AUDUSD is down testing a key support target area. What defines that area?

The AUDUSD is trading lower with the stronger dollar and in the process, the price is testing it at 200-day moving average of 0.67246. The last few days have seen early buyers against that moving average level on each of the dips. A break below would have traders targeting the low from Monday’s trade at 0.67143. Get below that level and the door opens for further selling potential with the 100-day moving average at 0.66918 as the next key target.

Conversely, if support can hold ahead of the 0.67143 level, we could see some corrective upside probing, but I would expect that a move back toward the 0.6750 – 0.67556 area would find willing sellers.

The US dollar is moving higher after stronger data today. GDP for the 2nd quarter came in higher at 2.4% versus 2.0%. The initial jobless claims and continuing claims showed continued job strength. US durable goods showed increased buying in big-ticket durable goods products.