AUDUSD pushes below trend line support

Technical Analysis

Author: Greg Michalowski | audusd

Some "risk off" flows, send the pair lower

The AUDUSD has pushed below trend line support as "risk off" sentiment hurts the pair.   That trend line comes in at 0.7162. Stay below would keep the sellers more in  control. The low has moved down to test the Asian session lows and its 38.2% retracement at 0.71523.  Get below that level and the 0.71436-49 swing area, would open the downside up for more downside probing. 

Some "risk off" flows, send the pair lower 
Earlier the pair was pushing higher after the aforementioned trend line did find support buyers (see green numbered circles).   However, the 100 hour MA (blue line) - which was tested twice - could not be broken. The inability to move above, helped to turn buyers to sellers and weaken the technical picture (moving below the 200 hour MA at 0.7172 was also a bearish tilt).  

The AUDUSD price action today is being controlled by the action in the stocks (or so it seems). That can be a difficult thing in these headline driven markets.  As a result, it is up to the trader to define the levels and hope for the best (at times).  

For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose