The AUDUSD fell below a swing area near 0.6523 and the 100 bar MA on the 4-hour chart last week (at 0.6525) and apart from a few modest moves above (including into last week’s close), most of the price action was below the 0.6523-25 area.
In trading today, the price moved below that level in the Asian session and has stayed below that level over the last three or so 4-hour bars. Staying below will keep the sellers more in control. On the downside, the low prices near 0.6486 are the next targets followed by the other closing levels going back to early February down to 0.6442.
Conversely, if the price can get and extend above the 0.6525 level, a cluster of moving averages including the 200 bar moving average on the 4-hour chart at 0.6543, the 100-day moving average at 0.65527, and the 200-day moving average at 0.65586 would be targeted.
This article was written by Greg Michalowski at www.forexlive.com. Source