The AUDUSD traded at the week’s low on Monday in the 1st hour of trading at 0.63706. The price moved sharply higher on that day, but by Wednesday, the price had rotated back down toward the lows into a swing area between 0.63791 and 0.63874. Support buyers came in against that level and pushed the price back to the upside.
In the rebound, the AUDUSD price moved back above its 100 and 200 hour moving averages (blue and green lines in the chart below). On Wednesday, the price held support on a dip against that key 100 hour moving average keeping the buyers in play/in control.
On Thursday, the price low held support against its 100 hour moving average again, and today in the current hourly bar, the price once again held above the 100 hour moving average.
That is 3 consecutive “holds” against the 100 hour moving average for the AUDUSD traders. The buyers are clinging to control above that level.
Going forward if the price were to stay above that moving average level, there is resistance up near 0.6453 – 0.64607. Move above that and another swing area between 0.6480 and 0.6487 would be targeted (see red numbered circles), followed by the triple highs from August and early September at 0.65216 (see blue numbered circles).
Conversely, break below the 100 hour moving average, and the bias turns more to the downside with the 200 hour moving average (green line in the chart below) at 0.64086 as the next target. That 200 hour moving average was broken on Wednesday and held support on a dip on Wednesday as well.
Breaking below it would put the sellers in firm control.
This article was written by Greg Michalowski at www.forexlive.com. Source