AUDUSD down but bouncing off support.

Technical Analysis

Author: Greg Michalowski | audusd

Back above 200 hour MA

The AUDUSD is down but has bounced off support defined by a trend line on the hourly chart (see red circle 5).  

AUDUSD trying to recover off lows.

The move off the low has taken the price back above the 200 hour MA (green line). That MA line was broken (closed above) on Friday. It was also tested on the correction low on Friday.  

The break today was not a great move technically.  However, the move back above that 200 hour MA at 0.67397 is positive. It tilts the bias alittle  more to the upside BUT it has to stay above that MA. Move back below, and the dip buyers can easily turn the beat around and sell.  

The targets on the topside come in at the 38.2% at 0.67557. Get above that and the 0.67746  to 0.67821 area is home to a number of swing levels going back to September 18 (see green numbered circles) and the 50% retracement of the move down from the September 12 high (not shown).  That area (yellow area) is KEY for any hope for the bulls.  The high on Friday did stall just before level (see green circle 12)

SUMMARY: For bulls/buyers close support at 200 hour MA.  Other support at the 100 hour MA and the underside of the broken trend line at 0.67283.  

Hold that support and the 0.67557 and the 0.67746 to 0.6782 area are key targets to get and stay above. On Friday, that area held on the test. 

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