The AUDUSD has seen choppy, two-way price action this week as buyers and sellers continue to battle for short-term control.
Yesterday, buyers gained the upper hand by pushing the pair above the 100-day moving average at 0.70505. The rally extended to a high near 0.7065, but the momentum could not be sustained. During the Asian-Pacific session today, the price slipped back below the 100-day moving average, turning yesterday’s buyers into today’s sellers.
The selling pressure then drove the pair below the 100-hour moving average at 0.70325 and into a key swing area between 0.7020 and 0.70269, where the day’s low stalled at 0.7023. Buyers stepped in against that support, helping the price rebound back above the 100-hour moving average.
The recent price action has done a good job of defining the key technical levels. On the downside, a move below 0.7020 would increase the bearish bias and open the door for a test of the 200-hour moving average at 0.70069. A break below that level would shift the focus toward additional support within the mid-July trading range.
On the topside, if buyers can build on the current rebound, the 100-day moving average at 0.70505 becomes the first key target. A sustained move above that level would expose the 50% retracement at 0.70707. Clearing both resistance levels would strengthen the bullish case and give buyers a clearer path toward extending the recovery.
In the video above, I take a look at the technicals in play and explain why the levels are important for your roadmap for trading.
This article was written by Greg Michalowski at investinglive.com.
