Trades around the MAs
The AUDUSD bottomed on Tuesday this week at a pretty stout floor in the 0.6921-252 area. The price trended higher into Wednesday. The last run higher saw the pair extend above a ceiling in the 0.69927 to 0.6997 area.
That break should have solicited an extension higher. The price did extend reaching a high for the week at 0.70372. However, since then, the price action has been more up and down with lower highs.
Today, the corrective move higher found sellers against a topside trend line AND the 38.2% of the range for the week at 0.66927 level. That was also in the topside swing area (see higher yellow area).
Staying below that cluster of resistance (topside yellow area), puts the bias in the sellers favor. However, the price will still need to extend below the 100 and 200 hour MA at 0.69789 and 0.69687 to give the sellers more confidence. At the close yesterday and in the first hour of trading today, the price did extend below those levels only to fail on the break.
