Last week, the AUDUSD moved up to test the swing high decline off the high that was reached in August near 0.7136. The high price extended to 0.7142 on Thursday before rotating modestly back to the downside.
The buyers had their shot at the new high going back to June, but he could not sustain momentum (see daily chart).
The decline off of the high moved the AUDUSD back below is rising 100 hour moving average currently at 0.70926, and has reached a low level today of 0.70645.
That low was just short of swing highs from January 18, and January 24, and the swing low from January 25 between 0.7057 and 0.7063 (see red numbered circles on the hourly chart below) . The low price today reached 0.70645. The current price is back up to 0.7076.
What next?
The 100 hour moving average (blue line in the chart below) currently at 0.70926 is now close resistance. Earlier today, the price traded above and below that level, before pushing to new session lows in the early US session.
However, with the bounce back higher off of the swing area support, the 100 hour moving average comes back into play on the topside. It would take a move above - and staying above that moving average level - to give the dip buyers against the lower swing area more confidence.
The close support and resistance levels are defined. The market traders will be looking for the next shove with momentum.
