The AUDUSD has faced persistent resistance at the falling 100-bar moving average (MA) on the 4-hour chart, attempting to break above it three times over the past five trading days. Each attempt, including the most recent on Friday, failed to generate sustained upward momentum, and the price closed below the MA, currently at 0.65146.
Current Price Action:
- The AUDUSD has moved lower today, driven by early-week USD strength.
- The pair has dropped below the 200-hour MA at 0.65016 and found support at the 100-hour MA, currently at 0.64927.
- The price has tested the 100-hour MA multiple times, holding above it, which keeps buyers engaged.
Key Levels to Watch:
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Bearish Bias:
- A break below the 100-hour MA (0.64927) would shift the focus lower.
- Immediate targets include the swing area between 0.6471 and 0.6481.
- Further declines could test the November lows at 0.6449 and 0.64334.
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Bullish Scenario:
- A move back above the 200-hour MA (0.65016) could attract buying interest.
- Breaking above the 100-bar MA on the 4-hour chart (0.65146) would open the door for further gains.
- Key upside target: 0.65304, the 38.2% retracement of November’s trading range.
Outlook:
To confirm directional momentum, traders should watch for a decisive break of either the 100-hour MA support or the 100-bar MA resistance on the 4-hour chart.
This article was written by Greg Michalowski at www.forexlive.com.
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