The Australian dollar softened after an uptick in December’s unemployment rate. A cut through 0.6940 has invalidated this demand zone, elbowing the bulls to the side. This left a shooting star on the daily chart, which may foreshadow a U-turn. 0.6820 near the base of a previous bullish breakout momentum sits on the 30-day moving average, making it an area of confluence. A deeper correction would test the daily low at 0.6720. On the upside, the buy side will need to push back to 0.6950 to relieve their trapped fellows first.
