AUD/USD was pretty bullish throughout December, as the USD had a bad month back then, after US ISM manufacturing dipped further in contraction. The year end cash flows which went against the USD as well also helped this pair climb higher towards the end of the year.

But, the sentiment reversed in the first week of January after the tensions between US and Iran and risk assets such as Commodity Dollars turned bearish. The sentiment turned even more negative after the coronavirus outbreak in China, which has been keeping AUD/USD bearish.

Moving averages have turned from support into resistance, with the 100 SMA (green) providing resistance during pullbacks at first, then the 50 SMA (yellow) and 20 SMA (grey) took things on their hands. In the last two days, we have seen a retrace higher, but that ended just below the 50 SMA, as seen on the H4 chart above. So, this pair remains pretty bearish, despite the pullback higher, which is a good opportunity to go short.