The AUDUSD charts remain more bearish.
The AUDUSD is little changed from Friday but currently trading near the lows for the trading day. However, what happened at the highs in trading today, shows that the sellers are remaining in control.
AUDUSD held the 100 hour MA 3 times over the last 2 trading days.
Looking at the hourly chart above, the price for the pair moved above the topside trend line and failed. On Friday, the pair squeaked above the line as well but failed as well. What has capped the upside on Friday and again today was the 100 hour MA (blue line in the chart above). Seeing the sellers against this level is our clue that the sellers remain in control.
The price peaked against or near this MA level on a number of occasions over the last 7 or so trading days – each time finding sellers. The last two days has seen 3 separate tests and three instances of selling (see 4, 5 and 6 in chart above0.
Going forward, if the buyers are to take back any control, they need to get the price above this MA line and keep it there. If that cannot be done, the seller remain in control.
Is the market racing lower?
No, but it can at any time if the price cannot go higher. A move below the trend line support at 0.8129, the low from Friday at 08121 and the low from December 17 and the year, at 0.81065 are the next hurdles. Below that 0.8066 is the 2010 lows and the next major target.
The 0.8066 is the next major target on the weekly chart.
