The AUDUSD moved lower earlier this week, and in the process fell below its 100-day moving average at 0.66952. A corrective bounce higher on Tuesday saw sellers lean against that level. Going forward, that level is a key resistance target.
The subsequent fall midweek took the price below its 200-day moving average at 0.6628. It also tested a swing area down to 0.66189. The low price on Wednesday reached 0.66135.
Since then, the price has been trading up and down resistance near the low from last week at 0.66578, and support near the low of the swing area at 0.66189. The 200-day moving average has seen the price move above and below it over the last two trading days.
Going into the new trading week:
- On the downside, breaking below 0.66189 would increase the bearish bias and have traders looking down toward the 61.8% retracement of the move up from the August low at 0.6575 as the next key target.
- On the top side, breaking back above the 50% midpoint at 0.6645, and then the low from last week at 0.66578 would likely encourage the buyers to make a run back toward the 100-day moving average of 0.66952.
This article was written by Greg Michalowski at www.forexlive.com. Source