Forex technical trading: AUDUSD finding support against the 200 hour MA, but are buyers that strong?
The AUDUSD had it’s share of ups and downs today. Since the sharp fall in the AUDUSD to start the week, the price of the pair has been chopping back in forth. What can be said from the price action?
AUDUSD has held support on 3 tests of the 200 hour MA.
The one thing from a technical perspective that can be said is the the 200 hour MA is holding support (see green line in the chart above). That MA has been tested on 3 separate occasions over the last 2 days. Stay above it and the buyers are hanging in there. Move below and there should be a momentum move lower.
Although support is holding, the action higher is not all that encouraging. Looking at the 5 minute chart today the last corrective moves found resistance near the 200 bar MA, the 50% of the move down today at 0.81628, and against the 100 bar MA on the last corrective move higher. This gives the sellers the dominant position in the short term as the market battles it out. Stay below those MA (risk for traders) and the sellers should make another run at the 200 hour MA and this time, may be successful in pushing it through.
AUDUSD bears are more in control on the 5 minute chart.