The earlier post on the AUDUSD talked of the 200 hour MA and the 50% of the July range. The move was made and it was to the upside. That move stalled at the 38.2% retracement area and a poor Richmond Fed Index has led to a reversal the other way. Now we are back testing that 50% level at the 1.0271 level. Also at the level is the bottom trend line of what is a bear flag. Although I am cautious with flag and pennants (for every one that forms and breaks and reaches the target, there are others that fail one way or the other). Nevertheless, a break of the level should solicit more selling in the pair. Traders will be expecting it to happen. The question is, is the volume there to make it happen today.
