AUD/USD was pretty bullish in December, as risk assets were climbing higher on positive sentiment in financial markets, due to the Phase One trade deal between US and China. The clear win from Boris Johnson in UK elections also helped improve the sentiment further, but that ended once the new year began.

AUD/USD turned bearish as the sentiment got dented, following the geopolitical tensions in the Middle East between US and Iran and risk assets turned bearish. Then, the outbreak of the coronavirus in China crashed everything and AUD/USD has lost around 350 pips so far.

Moving averages have turned into resistance now, with the 100 SMA (green) and the 50 SMA (yellow) providing resistance at first, then the 20 SMA (grey) took that job as the decline accelerated. This shows that the trend is picking up pace. So, sellers remain in control here and we will try to sell pullbacks higher.