The AUDUSD is in the midst of a down-and-up market today.
The move to the downside did find support against the lows from yesterday near 0.62953 (and above the low from last week and 0.62858 too). The low price today reached 0.62967.
The price rebound has moved up toward the high from the early Asian session and close from yesterday near 0.63278. The high price just reached 0.6325.
Although off the low, the AUDUSD pair has more work to do if the buyers are to take more control. There is a swing area between 0.63269 and 0.6334. Just above that is the 100-hour moving average of 0.63377 (blue line in the chart below).
Yesterday the price moved above that 100-hour moving average line only to stall ahead of the falling 200-hour moving average (green line in the chart below). Earlier this week the price extended above the 200-hour moving average but failed.
So buyers had their shot. They missed.
Nevertheless, the inability to move below the low from this week and the low from last week keeps the buyers in play in the short term. However, there is lots of work to do to convince the markets that the dip buyers are in control. Until the 100-hour moving average can be broken and stay broken (and then the 200-hour MA), the buyers are not winning.
This article was written by Greg Michalowski at www.forexlive.com. Source