The most recent bout of turbulence in the financial markets has weighed heavily on the Australian dollar with AUD/USD having fallen nearly four percent since last Friday. Last week, the pair closed below trend-line support (0.8187) from the September 2001 rally, and is currently trading under the 200-week moving average (0.8094). However, a weekly close below this level is still needed for a meaningful signal. The last fall below the 200-week moving average took place in June 1997 and the pair then failed to decisively break above it until January 2003 since when AUD/USD has remained north of it. The 38.2% retracement from the 2001 rally comes in at 0.7910, and the pair already pierced this line before retracing on Tuesday. The next major level of support would then come in at the 50.0% retracement level (0.7310).
AUD/USD Tests 200-Week Moving Average
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