Yesterday saw a modest bounce in the middle of the day that recovered most of Friday’s losses, but then stalled at $1.13. As the new day has got underway the pair has retreated.
The next support lies around $1.1230, and below this the pair will head towards the rising trendline from December, potentially seeing support materialise around $1.1140.
AUD/USD continues to drop
The downward move for AUD/USD appears to be gathering pace, after the small bounce yesterday.
A push through $0.7350 would likely see downside momentum accelerate, with the potential for a move back to the 200-day simple moving average (SMA) at $0.7267 in the first instance, and then down to the May low in the region of $0.7150.
It would need a close above the daily descending trendline off the April high, ie above $0.75, to reverse the current bearish impression.
USD/JPY heads towards lows of early May
The downward trend continues here, although the pair is somewhat skittish around ¥106, the lows of early May.
A break below here would then head towards the October 2014 low around ¥105.20, and then the risk is a swift dive to ¥102. A rally needs to get back above ¥106.50 to even begin to dent the bearish outlook.