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AUD/USD slumps to fresh session low on softer risk mood, key support levels in focus

AUD/USD falls to a session low of 0.7101 on the day

It is a risk-off start to European trading as we see equities in the region slump heavily, following the softer mood in US futures on stimulus setback and the worsening virus situation across Europe isn’t really helping with sentiment as well to start the day.
AUD/USD kept around 0.7125-30 earlier but has now slumped to a fresh low of 0.7101.
This continues the more bearish near-term bias in the pair as we move towards a confluence of key support levels around the 0.7100 handle currently.
The 7 October lows at 0.7096-03, 61.8 retracement level at 0.7097 and the 100-day moving average at 0.7094 are now the key levels to watch for the pair.
Hence, that makes the region around 0.7094-03 an interesting one to test buyers’ resolve following the more dovish remarks by RBA governor Lowe earlier today.
I would argue that a lot hinges on the risk mood now and if this turns into an ugly day for risk, a break below the key support region above may spell more danger for AUD/USD on the way down as there is little else in the way before getting near 0.7000 next.
Elsewhere, AUD/JPY has also slumped to a fresh two-week low of 74.73 as sellers are looking for an extended break below its 100-day moving average at 75.45.
Of note, there isn’t much support seen in the pair either towards 74.00 next potentially and that does not bode too well for aussie or risk sentiment in general currently.

Source: Technical analysis

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