AUD/USD cycling near lows amidst US election swings, ceiling remains at 0.7250

The AUD/USD is testing into the low end in early Wednesday trading, falling back from an early high above 0.7250 before turning about-face into 0.7215 as broader markets heave under the pressures of US mid-term elections, where races are still too close to call accurately.

Risk appetite kicked off the overnight session in the high end, but a steady back-and-forth over key critical states has seen the Pacific-Asia session take a brief reprieve from the whipsaws as investors await more accurate vote counts to pick a direction.

The Aussie initially saw 0.7260 in the early overnight window as the US Dollar swooned across the G10 currency space before getting pinned into new lows for Wednesday at 0.7212, and the pair is managing to find some support from the 50-hour moving average near 0.7215 and Asia session traders are expecting further developments.

AUD/USD levels to watch

Support for the Aussie is built into the pair thanks to a major Fibonacci retracement level, and the day could be skewed towards the upside according to FXStreet's own Valeria Bednarik: "the pair is comfortable above the 61.8% retracement of its September/October decline, which left doors open for a full retracement up to 0.7314, the high achieved on September 26. Short-term technical readings lean the scale toward the upside, although the positive momentum is limited, as the price is currently above its 20 SMA, which has partially lost its upward strength, while the Momentum indicator turned higher within neutral readings. The RSI indicator pulled back from overbought readings, now flat around 62. The key is the 0.7250 region, a strong static resistance area that the pair already tested last week."

Support levels: 0.7200 0.7165 0.7120    

Resistance levels: 0.7250 0.7290 0.7315