The AUDUSD moved out yesterday in the process and tested its rising 100 bar moving average on the 4-hour chart. Today, that moving average along with the 50% midpoint of the move down from the December high, is providing support.
The corrective move higher in the early US session so the price extended briefly above a swing area between 0.6635 and 0.6648. That was reversed after the stronger-than-expected S&P global PMI data with the price moving back down toward the aforementioned technical support levels near 0.6615.
Going forward, buyers and sellers will continue to use that support as a key barometer. Moving below would increase the bearish bias.. Staying above would increase the bullish bias.
This article was written by Greg Michalowski at www.forexlive.com. Source