The AUDUSD to a high yesterday of 0.67729. The high price today edged just above that level of 0.6774. Both those levels fell short of the mid-November high peaked at 0.6797.
Today, the dollar has been more bid, and that has led to a move back to the downside for the AUDUSD. The move lower took the price into a swing area between 0.67168 and 0.67294 (see red numbered circles and yellow area on the chart above).
Dip buyers came in and leaned against the swing area. A move below is needed to give the sellers more hope that the highs are in place. Having said that, on the downside there is a key cluster of support defined by the
- 200 hour moving average at 0.66999,
- the 100 hour moving average 0.6689 and the
- 100 day moving average at 0.6989 as well.
That area ultimately will be the defining bias and barometer for both the buyers and sellers.
Stay above is more bullish. Move below is more bearish.
For now, the price is lower, but buyers have leaned against the support target. Can they build off that support a move the price back to the upside? That will be what traders will be eyeing.
