The AUDUSD traded above and below the 100-day MA last week at 0.9695. The price moved above the MA on Thursday/Friday and closed above that MA tilting the bias in the buyers favor.
However, today, the price moved below the MA in the European session and stayed below in the US session. What I like is the price did stayed below the 100 day MA as traders shifted from bullish above the 100 day MA to bearish below the 100 day MA.
That – along with higher yields, and a USD moving higher – has now taken the price of the pair to the low from last week at 0.66578 and now below that level. Traders will look for more selling with the 50% of the move up from the August low at 0.6645 as the next target, followed by the 200-day MA at 0.66268.
Typically, those two technical indicators are key levels for both buyers and sellers. They tell the longer-term bias for all traders.
With the price moving toward those levels, I would expect some buyers near the levels. Of note, is back in mid-September, the price moved down to test the 200-day MA and found early buyers against the MA level. That also helps to increase the levels importance going forward.
This article was written by Greg Michalowski at www.forexlive.com. Source