The AUDUSD buyers took the price sharply higher last week as US rates declined, stocks rebounded and risk on sentiment sent buyers into the AUDUSD pair.
However, the price high ran into the falling 100-day moving average near 0.6508. It also ran into resistance going back in time to August between 0.6500 and 0.65214 (see red number circles). The 38.2% retracement of the move down from the July high to the October low was also in that area at 0.65077.
The high price today reached 0.6522 near the high of that cluster of resistance.
The last few hours have seen the price of trade above and below the 0.6500 level.
Sellers are leaning against the aforementioned resistance. However, if the price were to move back above the 100-day moving average, sellers could easily turn to buyers again. Above that, a move above the high of the swing area near 0.65214, and buying should intensify. Until then, the leaning sellers “remain in the game” with hope for more downside momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source