The AUDUSD moved lower in the Asian session and in the process moved down to test a swing area near 0.65229. That support area extends back to early November and again around November 22. The price on November 22 based against that level and ultimately moved up to the high price reached on Monday.
This week, the price has trended to the downside after peaking on Monday, but that same support target at 0.65229 did hold today, and we are seeing a snapback rally.
Looking at the hourly chart above, the price of the AUDUSD has now moved back above the broken 38.2% retracement of the move-up from the November 10 low. That level comes in at 0.6555 and is now a support target (it based against that level before moving to session highs).
The move higher has taken the price back above its 200-day moving average. Recall from yesterday the price traded above and below that moving average before rotating to the downside into the close.
Potentially limiting the upside are the falling 100 and 200-hour moving averages at 0.6595 and 0.6607 respectively. Recall from earlier this week, the price it did find support buyers against that 200-hour moving average before breaking lower on Tuesday.
For the trading week, the trend has been more to the downside, but after finding support against a key swing target, the buyers are trying to make a play. However, topside moving average resistance and the pesky 200-day moving average may give the sellers something to lean against and give the buyers some cause for pause (especially have the key jobs report tomorrow).
This article was written by Greg Michalowski at www.forexlive.com. Source