The triple crown of technical levels broken to the upside, but it seems the rally is tiring.
The AUDUSD had some tough resistance in the 0.7530-56 area today.
- The 200 day MA was at 0.75305
- The 50% of the move down from the March high came in at 0.75389
- The 100 day MA was positioned at 0.75564.
That is the triple crown of technical levels and each was broken in trading today.
What I like about the move is if you look at the hour chart below, the break of the 200 day MA saw a corrective retest hold that MA level. That was good news for the buyers at the time. They leaned against the risk level and helped to force the price higher from the MA support launchpad.
That was the bullish view.
The not so bullish view is how the market has tired around the 100 day MA at 0.7556.
Yes...the level was broken and the price did move even higher. However, we now have a double top at 0.7566 - just 10 pips above the final resistance target. The range for the day is 68 pips. That is 10 pips above the 22-day average of 58 pips. That is the same 10 pips that the 100 day MA has been broken by in trading today.
The market buyers seems to be a little tired.
As a result, we could see a retest of the 50% and the trend line/200 day MA at 0.7530 (see hourly chart below). That level will be key for this pair going forward. Stay above and the trend higher has the potential to extend. Move below and 4 day rally, may be coming to an end, and traders will start to back fill some of the gains.
