AUDUSD backs off after 200 hour MA/50% retracement was broken.... and failed
The AUDUSD bottomed on Monday after sharp selling from the high at 0.7157 last Thursday (see hourly chart above). The 3 day fall traveled around 300 pips from the high at 0.7157 to the low at 0.6855 (302 pips to be exact). That is a pretty good move in a relative short period of time.The price since bottoming has seen sharp intraday moves up and down, but has also found higher lows and higher highs on Tuesday and Wednesday and even today. The high price today extended above the high from yesterday at 0.69953 (sellers leaned against 0.7000 yesterday) and took the price to a new corrective high at 0.70106. In the process, the AUDUSD moved above its 200 hour MA (green line) AND the 50% midpoint of the 302 pip move. Both technical levels came in near 0.7006. The break of those two technical levels at 0.7006 SHOULD have led to more momentum buying. However, that momentum died after 5 -6 pips. As a result, the inability to push higher, turned buyers to sellers. Subsequently, the price has moved back down to a NY session low at 0.6953. The 100 hour MA is below at 0.6936 and would be the next major downside target. On the topside, the best case scenario for sellers who are looking for more downside from here, is for the price to stay below the 38.2% at 0.69704. A move above takes away some bearishness out of the most recent decline and would have traders looking toward the swing area between 0.6983-93.For now the sellers are in control. This article was written by Greg Michalowski at www.forexlive.com.
The AUDUSD bottomed on Monday after sharp selling from the high at 0.7157 last Thursday (see hourly chart above). The 3 day fall traveled around 300 pips from the high at 0.7157 to the low at 0.6855 (302 pips to be exact). That is a pretty good move in a relative short period of time.
The price since bottoming has seen sharp intraday moves up and down, but has also found higher lows and higher highs on Tuesday and Wednesday and even today.
The high price today extended above the high from yesterday at 0.69953 (sellers leaned against 0.7000 yesterday) and took the price to a new corrective high at 0.70106. In the process, the AUDUSD moved above its 200 hour MA (green line) AND the 50% midpoint of the 302 pip move. Both technical levels came in near 0.7006.
The break of those two technical levels at 0.7006 SHOULD have led to more momentum buying. However, that momentum died after 5 -6 pips.
As a result, the inability to push higher, turned buyers to sellers.
Subsequently, the price has moved back down to a NY session low at 0.6953. The 100 hour MA is below at 0.6936 and would be the next major downside target.
On the topside, the best case scenario for sellers who are looking for more downside from here, is for the price to stay below the 38.2% at 0.69704. A move above takes away some bearishness out of the most recent decline and would have traders looking toward the swing area between 0.6983-93.For now the sellers are in control.
This article was written by Greg Michalowski at www.forexlive.com.
