The AUDUSD started the day today testing the high from yesterday at 0.6257 and finding willing selllers. The double-top increases the levels importance today and going forward. If the buyers are to take more control, getting and staying above that level is required. Meanwhile, seller may continue to look to keep a lid on the pair (risk-defining level). The level is important for both buyers and sellers.
The subsequent fall broke below the 200-hour MA at 0.62037, but stalled the fall not once – but twice – in a swing area between 061917 and 0.61999. Like the doublt top, that area is now increased in importance in the short term at least. Moving below would be more bearish. Staying above would keep the buyers with tha small advantage.
So with support and resistance doing their jobs, the buyers and sellers will battle it out between the extremes and look for the next break.
On the downside, move below 0.61917 and the rising 100 hour MA at 0.6186 will have traders targeting the low from Tuesday at 0.6165 and then the low for the week (and low going back to October 2020) at 0.61309.
On the topside, break above 0.62457 and the door opens with 0.6264, 0.6274 and 0.6287 to 0.6301 as the next key target area.
This article was written by Greg Michalowski at www.forexlive.com.
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