Ahead of the swing lows from September
The AUDUSD is waffling over the last couple of hours as stocks advanced in US trading and support targets are approached.
Looking at the hourly chart above, the September 24 low came in at 0.70157. The low price today reached 0.70202 so far. Below that is the September 25 low at 0.70052. Falling below that level would take the price of the AUDUSD to the lowest level since July 20 and should solicit more selling pressure.
Recall from yesterday, the price traded above and below its 100 day moving average (currently at 0.70998). However, downside momentum picked up in the New York session and the pair closed just above the low price from October 15 at 0.70556.
In the Asian session, that low was taken out after RBAs Kent spoke about further stimulus. the 0.70556 level is now a close risk level for sellers looking for more downside. Stay below keeps the bears firmly in control.
Drilling to the 5 minutes chart below, the price waffle near the lows has created a double bottom at 0.7020 area. The current price is trading just above its 100 bar moving average and approaches the 38.2% retracement and 200 bar moving average at 0.7039 and 0.70429 respectively. Earlier, the market found sellers against its 200 bar moving average (green line in the chart below) If buyers are able to push above that level, there should be more intraday buying as additional shorts cover.
