The AUDUSD moved lower after the stronger core CPI data. On the break lower, the price moved below a cluster of technical levels including the
- 200 bar moving average on the 4-hour chart at 0.6653, the
- 100-day moving average of 0.6648, and the
- 38.2% retracement at 0.66422.
That opened the door for further downward momentum, but the low price declined did stall ahead of its 200 day moving average at 0.66154. UGH.
The price has since bounced back toward the cluster of technical levels above, and that threatens the downside momentum. Breaking back above the highest level at 0.6653 and we could see the sellers turn the buyers with the falling 100-hour moving average at 0.66799 as the next upside target.
This article was written by Greg Michalowski at www.forexlive.com. Source