The AUDUSD is showing resilience by holding above the key 100-hour and 200-hour moving averages, currently clustered around the 0.6388 area. This zone also corresponds with an old ceiling.
Despite this underlying support, buyers have struggled to gain real momentum. The last 5 trading days has seen the price action trade above and below the old ceiling level. On the topside, the pair remains contained below a ceiling formed by multiple highs near 0.6429–0.6441. Sellers have repeatedly leaned against this resistance zone, capping rallies over the past week.
On the downside, the lows from last week bottomed on Wednesday and Thursday near 0.63437.
For buyers to gain more control, a break above the 0.6429–0.6442 resistance area is needed.
Move above, and the door opens the upside for more probing.
The buyers are making play on the move away from the 100 and 200 hour moving averages in the old ceiling near 0.6388. As long as the price remains above those levels the upside momentum can continue.
This article was written by Greg Michalowski at www.forexlive.com.
