The AUDUSD moved higher in the early Asian trading after the Christmas hiatus and the move higher took the price above the 100 hour MA (blu e line currently at 0.6239). The break gave buyers some hope in the short term, but the high price ended up stalling at the underside of the broken trend line (see red numbered circles).
The move back below the 100-hour MA gave the sellers the go ahead to push lower and that move has seen the pair bottom near the lows from earlier this week. Buyers are leaning but the price is still skimming the lows for the year reached last week at 0.6198.
Going forward, it will take another move above and staying above the 100-hour MA to give buyers hope. ABsent that, and the sellers are in control and we could expect new lows before year end.
This article was written by Greg Michalowski at www.forexlive.com.
Source link
