The AUDUSD (NYSE:FXA) has been consolidating at the lows over the last day or so. The price is also testing the 61.8% of the move up from the October 2011 low. That level comes in at the 0.994664 level. The low today came in at 0.9944. A move below this level opens up the door for further downside momentum.
Looking at the hourly chart, the price has moved above channel trend line resistance but has stayed below the 100 hour MA at the 1.0035 level (blue line in the chart below). Stay below and the bears are in control. Move above (the price has not closed an hourly bar above the line since May 1st), and a further correction should be forthcoming.
Decision time is approaching for the traders in the AUDUSD. Correct above the 100 hour MA or break the next key support.