Markets are generally back in risk averse mode today. Nikkei lost -286 pts or -1.34% to close at 21031.31. Major European indices are in red in initial trading, with DAX due -1.5%, CAC down -1.3% and FTSE down -0.6%.
AUD is a currency that’s usually weighed down by risk aversion. EUR/AUD extended recent rally and reaches as high as 1.6189, and regains upside H action bias.
AUD/USD also drops through 0.7671 support to resume whole fall from 0.8135.
However, as AUD/USD dips lower, it will face confluence of 4H S1, D S1 and W S1 at 0.7648/9. AUD/USD might struggle to build downside momentum for a short while.
