The AUDUSD is falling to a new session low and new low for the week as well. In the process, the price has broken below its 100-hour moving area at 0.6637, and the 100 bar moving average on the 4-hour chart at 0.66346. Those moving averages now become topside resistance in the short term, and give the sellers control at least in the short term.
Having said that, there is work to do to give the sellers more control.
Since April 20, the price has been trending to the upside with the price moving from 0.6361 to 0.67135. However, the last few weeks have seen down and up price action which has allowed for the key moving averages to catch up with the price. Moving below moving averages today helps to tilt the bias to the downside in the short-term.
If the sellers are to take more control, however, the 38.2% retracement of the move up from the April 19 low, along with a key swing area between 0.6579 and 0.6585 would need to be broken. With the price currently at 0.6620, there is room to room to the downside before reaching that key target.
To find out more about the technicals driving the AUDUSD currency pair, watch the video above.
This article was written by Greg Michalowski at www.forexlive.com.
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