The AUDUSD is lower this week, but as the week works toward the close, the AUDUSD is running into a cluster of support as the week moves toward the close. The area comes in between 0.6676 and 0.6689.
I targeted this area in the post from Wednesday saying:
A break… could lead to another multi-technical zone coming into play, involving the 200-bar moving average on the 4-hour chart, the 50% retracement, and a rising trend line, all of which range between 0.6675 and 0.6686. Sellers would need to push below these levels to gain more confidence for a further decline.
The low price just reached 0.6683 and has bounced modestly.
Providing support is a:
- Swing area between 0.66767 and 0.66896
- 200 bar moving average on the 4- hour chart at 0.66784
- 50% midpoint of the move up from the June low at 0.66865
- Upward sloping channel trend line at 0.6683.
That is a lot of technical support and so far, the market is rightfully so, leaning against the level. Dip buyers can lean with a stop below. The hope is rotation back resistance nare 0.6712 without risk much on the trade.
Conversely, if the cluster of support can be broken, the door opens for more downside probing at 0.6663 and then another swing area at 0.66189 to 0.66279 and the 100-day MA at 0.6604.
Find out all about it in preparation for the new week, by watching the above video.
Comments and thoughts, please share.
This article was written by Greg Michalowski at www.forexlive.com. Source