The AUDUSD moved lower in U.S. trading after testing and failing to break above the 200-bar moving average on the 4-hour chart. The subsequent decline pushed the pair below its 100-bar moving average at 0.6502, shifting the near-term bias to the downside and triggering follow-through selling.
That said, the downside momentum stalled near last week’s lows at 0.6481, with the pair now trading around 0.6491 on a modest bounce. Sellers are pressing the case, but they need to maintain momentum and push through last week’s low to strengthen the bearish outlook.
If a break lower occurs, the next key target comes in at 0.6449, where the rising 100-day moving average currently sits. Until then, buyers may continue to defend support levels, leaving the pair at a technical crossroads. What the sellers on the break today do not want to see is a rotation back above the 100-bar moving average on the 4-hour chart currently at 0.6502.
This article was written by Greg Michalowski at investinglive.com.