100 day moving average for the AUDUSD is at 0.7005
The AUDUSD is trading to new session lows, new week lows and is testing its key 100 day moving average at 0.70053 level. The low for the day just reached 0.70052.
This week, the pair has moved down on each day. The pair is currently working on its 6th straight day to the downside (including last Friday's decline). That move has taken the price from a high last Friday at 0.7333. With the low at 0.7005 today, the range has been 328 pips.
Along the way this week, the price moved below the swing lows from August at 0.7135, 0.71083, and the August 3 low at 0.70758. Those levels are now risk levels for the pair. Stay below keeps the sellers more in control.
Of course a break of the 100 day MA (and probably 0.7000 natural level) is the focus NOW. Buyers and sellers are both focused on the level. In one respect, it represents a low risk buying level to take profit or try to pick a bottom. However, given the trend move lower, I would also expect that if broken, the dip buyers might look to quickly exit (go short).
Drilling to the hourly chart below, if the level does hold support, getting back above the 0.70154 level would be needed to give the buyers some initial comfort. That level was the low from yesterday. Above that, and traders would target the 0.7042 level. That was the close from yesterday AND near a swing area from the NY session (the high reached 0.70403 in the NY session). Get above THAT level and dip buyers are feeling even more comfortable, and represent the minimum if the buyers are to take back some of the control from the sellers...
