The AUDUSD has not been spared from the downside seen in the forex market today.
Just prior to the CPI report, the pair moved up to test its 200 hour moving average (green line in the chart above). The subsequent tumble to the downside on dollar buying sent the price to a new session low near 0.6725. That level was retested before bouncing back higher and moving all the way back to the 200 hour moving average for the 2nd time.
So in the New York session, the 0.6725 low was tested twice. The 200 hour moving average was tested twice as well. In between is a swing area going back to July 1, July 5, July 6, and July 7 between 0.6761 and 0.67635. That level has just held support on the dip off of the recent move to the downside.
So the battle lines have been drawn with the price staying below the 200 hour moving average giving the sellers some comfort and more control.
In favor of the dip buyers, the lows today failed to take out the lows from both Monday and Tuesday. Moreover the old swing floor seems to have attracted dip buyers on the last intraday move to the downside of 0.6762 area.
So there is some hope for both buyers and sellers. Get above the 100 hour moving average at 0.6787 and the 200 hour moving average at 0.68018 - and stay above - would give the buyers more confidence that the ups and downs near the bottom may be over for now and further corrective move to the upside might be anticipated. There is room to roam
Absent a move above the moving average levels, and the bias only argues in favor of the shorts/sellers.despite the sharp declines.
