The AUDUSD moved higher in the Asian session and in the process moved to the highest level for the month and traded to the highest level since September 1. The high on September 1 reached 0.74128. The high price today reached 0.74065. The inability to get above that level - and trade to new highs for 2020 - has led to buyers turning to sellers.
Drilling to the hourly chart, as the price moved toward the 2020 high, the pair extended back above a topside trend line. That trendline was broken on Friday as well. However on each time, the break failed. The failed break - combined with the technical view from the daily chart - helped contribute to the declines today.
The moved back lower has been able to extend the price below its 100 hour moving average (blue line) at 0.73657. That moving average is now resistance. For sellers looking for more downside, stay below the level keeps the sellers in control.
The low for the day has moved down to test Friday's a low price at 0.73461. So far, the level has attracted some buyers/profit takers.
It will take a move below the lows from Friday and today to have traders looking toward the 38.2% retracement of the move up from the November 13 low at 0.73356 along with the rising 200 hour moving average just below that level at 0.7333. That area should be good support, with stops on a break below.
For now, intraday sellers are making a play after failure to take out the September (and year) highs. The 100 hour moving average remains resistance. The low from Friday and swing area down to the 200 hour moving average/30.2% retracement are the next support targets.