AUDUSD steps its way down this week. Technicals lead the way lower.

The AUDUSD started to show cracks in its bullish bias last Friday, and that crack led to a bigger and bigger move as technical levels were taken out one by one.

First, it was the 100-hour moving average (higher blue line) and channel trendline. That led to a break of the 200-hour moving average. The price traded up and down on parts of Tuesday, Wednesday and Thursday, but kept mostly below the 200-hour moving average on moves higher. In trading today, the price has tumbled below the:

  • 38.2% retracement of the move up from the May 31 low,
  • 100-day moving average of 0.6713,
  • 200-day moving average at 0.66913, and more recently the
  • 50% midpoint of the essay move higher at 0.66785

Sellers keep on pushing.

What would ruin the bearish bias now?

Getting back above the 200-day moving average at 0.66913 and the 100-day moving average of 0.6713 would give buyers some hope. Absent that and sellers would look to target a swing area between 0.6637 and 0.6643, followed by the 61.8% retracement of the move up from the May 31 low at 0.6626 as a next major target.

This article was written by Greg Michalowski at Source