The pair had been hanging on to daily support from the 19 January low at 0.6870 so far this month but that finally looks to be giving way today in a drop to 0.6830 currently. The drop today sees price down 0.7% to its lowest since 6 January as the dollar runs hot and equities are staying on the defensive. That said, buyers are still hanging in there for the most part.
Despite the rejection at the August highs at 0.7125-36 upon the start of the year rally, the latest pullback isn't cracking any key technical support levels just yet. That is seen at the 200-day moving average (blue line) first at 0.6802 currently before the trendline support (white line) from the October and November lows at around 0.6785 comes into play.
Additionally, there is also the 38.2 Fib retracement level of the upswing since October at 0.6780. And then below that, there is still the 100-day moving average (red line) at 0.6705.
As such, there are quite a number of layers that sellers will have to peel in order to really set off a strong downside leg for AUD/USD. So, while we are seeing the stronger dollar come into play now, there is still more work to do to on the part of sellers to formalise a major downtrend in the pair.