The AUDUSD is also reversing the trend seen on Friday and in early Asian trading today. The current price is moving below the 100 hour MA (blue line in the chart below at 0.87135) but has support approaching at the 0.8690 channel trend line (the price failed on the break below on Friday’s trade and reestablished the line as support).
The holding of the trend line support, but having the price below the 100 hour MA (this is the third fall below the 100 hour MA in the last 5 days) will now provide the backdrop for the next bias battle between sellers (against the 100 hour MA) and buyers (against the trend line).
Watch for the resistance against the 100 hour MA on the first test, and the market will see if the lower trend line can ultimately be broken (and the price stay below the level). If the 100 hour MA is broken be careful for more upside momentum. The channel is moving higher (albeit in a wide avenue) and falls below the 100 hour MA over the last 5 days have not been too successful.
AUDUSD retest the lower channel trend line.
