Asian markets were relatively soft this time yesterday and things have swung around today.

We saw some downside pressure throughout the Asian session yesterday, with both the AUD/USD and NZD/USD pushing lower. This morning those very same names are now seeing some upside.

The AUD/USD is of most interest at the moment, given we have seen price re-testing the key 0.7700 level. This was the level that dropped yesterday. At the same time, we also saw price fall all the way to the bottom of this channel that we’ve been following for some time.

Like I said yesterday, this is a bearish pattern, in that price is expected to break to the downside. That said, there are no guarantees in this business and much will depend on what happens with the USD this week.

I am still expecting some massive developments to take place over the coming days with the Presidential inauguration being the main one to watch on the 20th. While most believe Joe Biden will be President, I still think there might be some more developments to come linked to the ongoing voter fraud issues that simply have not been looked into by the court system on any level.

Looking at the USD as well and we can see that price has really broken to the upside on the US Dollar Index. We saw price nearly touch the 91.00 level and recently reclaiming the 90.00 level.

That upward pressure will keep a lid on the AUD/USD today, so the first thing to do is to see if price can reclaim 0.7700. If that point fails, then I think we could see price start to push lower and potentially take out the bottom of this channel.