The AUDUSD has been moving up and down, with the pair moving up to test the 200 hour MA. However, seller leaned early against that level and the price has since stepped back down to low for the day. On the way lower, the price broken back below the 100-hour MA at 0.65378.
A catalyst?
The US stocks have moved lower. AUDUSD often leads to risk-off and with the Nasdaq now extending to -1.5% lower, and the S&P down -1.0%, the flow of funds in the pair is lower.
The 100 hour MA is now risk for sellers at 0.65378. Staying below will have traders looking toward a lower swing area between 0.6475 to 0.6484 (see the video for the derivation of that area going back in time). The low from yesterday stalled at that area and bounced..
This article was written by Greg Michalowski at www.forexlive.com. Source