The AUDUSD initially moved higher during the Asian and European trading sessions but encountered resistance at its 200-hour moving average and the 50% midpoint of last week’s trading range, around the 0.6366 level. This resistance zone was tested twice.
Later, during the early North American session, US retail sales data pushed the price lower, testing the lows established during the Asian session at approximately 0.6334. This level coincided with a significant swing area ranging from 0.6327 to 0.6334, which had also acted as a resistance zone during Friday and parts of Monday’s trading.
In summary, the AUDUSD adhered to technical levels, with support holding where expected and resistance doing the same. The market currently sees a battle between buyers and sellers, both utilizing technical analysis to assess and manage their risks. Eventually, the market may break through one of these extremes, but for now, it remains a contest between these key levels.
This article was written by Greg Michalowski at www.forexlive.com. Source