AUD/USD: Buyers continue to set up camp

Technical Analysis

Author: Justin Low | audusd

Buyers defend attempts to break below the 100-hour moving average


ForexLive
As mentioned yesterday, a base appears to be forming in the pair and we're getting more confirmation of that today as buyers continue to defend any downside move around the 100-hour MA (red line).

But despite that, we're not seeing price action run away to the upside just yet. The dollar is the weakest performing major currency so far today but the moves have been very mild. It feels like a typical summer day in European trading now, so unless there is any further extension then we may very well hug these levels as we close out the week.

The key resistance level to break above for any extension is the overnight high @ 0.7287. That will see a retest of the 0.7300 handle where offers lie - as well as the 38.2 retracement level @ 0.7298.

In the bigger picture, the pair looks to have held off declines as it approached the 0.7200 level (barrier options still in place) and with the dollar index a little sluggish after failing to breach 97.00 we could be in for some further retracement for the time being.



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