The AUD/USD is reaching new session highs, breaking above two of four key technical levels: the 50% retracement of the move down from July at 0.6473 and the 100-bar moving average on the four-hour chart at 0.6577. The current price is trading at 0.6586.
The next targets are the 200-day moving average at 0.6592 and the 100-day moving average at 0.6600, which is also a natural resistance level. With two of the four technical levels already breached, the question is whether buyers can maintain the momentum.
For traders long from lower levels, this is an opportunity to take some profit against these technical levels and re-enter if the price breaks above 0.6600. Sellers can also lean against the 0.6600 level, hoping the price will reverse as sellers overpower buyers at this risk-defining level. Alternatively, traders might hold their long positions, anticipating a break above 0.6600.
When multiple technical levels cluster together, it signals a key area with limited risk, attracting traders’ attention.
IN a related video, I talked about MAs and the importance. You can watch that video HERE.
This article was written by Greg Michalowski at www.forexlive.com. Source