The AUDUSD is dipping to new lows and is testing the next key support level at the 0.99768. Last week the pair peaked against the the key 50% retracement of the 2012 range and failed to close above the key level, giving the market a technical reason to sell along with the “risk off” trade (see daily chart).
A move below the 38.2% level at the 0.99768 should open the pair for increased selling. However, watch the 0.9966 level. This is channel support on the 5 minute chart and a hold against this, followed by a move back above the 0.99768 level, could solicit some short covering. A move below should not be ignored, however, as the trend down today, would then be accelerating (moving outside the channel decline).
Topside resistance comes in at the 1.0003 level where the topside trendline and 100 bar MA on the 5 minute chart are currently found (and moving lower). I would expect sellers on the 1st test of this level on a correction move.