A well supported trend line and 100 day MA come in at 1.0197 for the AUDUSD. Before that level is the 50% of the 2012 high to low trading range (comes in at 1.0216). The low has reached 1.02205 so far.
This area is not a strange area for the month. The price has been above and below the 100 and 200 day MA (blue and green line) for most of the month. The break to the upside last week solicited buying but a failed break (i.e. a move lower) and move back below trend line and the 100 day MA would increase the vulnerability for the pair. Traders will now look for the 200 day MA at the 1.0278 to contain the upside (green line). Closer resistance would come against the broken trend line form the lows at 1.0240 currently. Stay below this line and a run at the key 1.0197 can be expected.
The move started on the break of the Bear Flag (see prior post).
