The AUDUSD saw some up-and-down price action this week, with a ceiling near 0.6840 (there was a failed break on Thursday that was quickly reversed).
In trading on today (on Friday), the price fell below the low from Wednesday’s trade and also the 50% midpoint of the move up from the July low to the July high. The level comes in at 0.67466. That midpoint level is also between a swing area between 0.67374 and 0.67546.
That combination will now be close resistance for traders looking for more downside momentum today and going into the new trading week. Stay below and the sellers are in firm control.
On the downside, the low price today reached 0.6722. That low got within 7 – 8 pips of its rising 200-day moving average at 0.67148. That moving average will be the next key target to get to and through if the sellers are to continue their move to the downside (today and into next week). Below that level, and the 100-day moving average at 0.66863 would be targeted.
Conversely, if the price can extend back above the 50% and swing area high at 0.67546, traders will start to look back toward the broken 38.2% retracement level at 0.67814 and a swing area near 0.67862
So sellers are in control. Move below the 200-day MA opens the door for more selling in the pair today and going forward.
This article was written by Greg Michalowski at www.forexlive.com. Source