AUDUSD probes the downside and looks to test the 200 hour MA

Technical Analysis

Trend line broken. 100 hour MA 

The AUDUSD has moved down to test the 200 hour MA at 0.71205. The price last traded below its 200 hour moving average back on July 17 and July 16 (only briefly each time).  

The pair broke below a trendline earlier in the day and has stayed below that trend line since that time.  Traders initially try to stalled the pair at the 50% of the move up from last Friday’s low at 0.71296, and traded above and below its 100 hour moving average throughout the London session.  The recent move to the downside is a continued probe by the sellers.  Getting below the 200 hour moving average and then the 61.8% retracement (and swing low from Tuesday) at 0.71139 would be another level to get and stay below if the sellers are to take back more control.  

The pair is working on a 4 day positive streak. The close yesterday was a 0.71866. It looks like the streak will be broken today.

Looking at the weekly chart, the price high reached just today extended to 0.71959. The swing hi going back to February 17 week reached as high as 0.7206 (highs reached from 0.7198-0.7206 – see green numbered circles). The inability to extend above that area seems to have dissuaded some of the buying.

Articles You May Like

More dollar buying as London traders exit
XAUUSD forecast – Where to next for Gold prices analysis – forex trading strategies
USDCAD reverses to new session lows
European shares end the day lower. UK’s FTSE falls -1.1%.
Free V-Power Trading System – Best Day Trading Strategy For Forex, Commodities, Stocks And Indices

Leave a Reply

Your email address will not be published. Required fields are marked *