100 hour moving average at 0.72596 is now resistance.
The AUDUSD has moved lower on the back of anxiety about China and risk off sentiment, combined with some technical breaks and bearish tilts.
- The 200 hour moving average which was broken yesterday, was rebroken to the downside today and stayed below.
- The 100 hour moving average has now been broken at 0.72596 and as stay below that level as well over the last five hours of trading
Those two technical breaks along with the fact that the price highs both yesterday and today stalled ahead of the 38.2% retracement, and within the swing area between 0.73125 and 0.73226, was the technical catalysts for more downside momentum.
What now?
Stay below the 100 hour MA is more bearish.
The 0.72336 level is a modest support area, but really the floor at the lows this week between 0.72196 and 0.72226 are the key downside support levels (see hourly chart above).
Move below that floor and it opens up the door for a potential retest of the 2021 low down at 0.71057 (interim support at 0.7135 to 0.71568). See the daily chart below
