• The Australian dollar has fallen to trade at 1.0059, just above the 1.0020 session low on fundamental drivers.  However, the technical picture isn’t that much better – leaving some speculation that further downside can be expected in the spot rate.
• Specifically, the AUDUSD currency pair has broken through key support of 1.0118, or the 61.8% fibonacci retracement from the 0.9668-1.0843 bull wave.  The level stood as the last line of defense for the spot rate, with a penetration below all but securing a likely decline.  Any turnaround or momentum for a move higher remains contingent on this level.
• With the Aussie set to decline, short sellers have now shifted their attention to support at 0.9860 or the December 15th session low.  The level will be enacted following a confirmed break below the parity level – which still stands as a technical benchmark.

More on technical analysis - Could Euro Fall To 1.2600?