The AUDUSD yesterday moved down to test a cluster of support defined by the
- 200 bar moving average on the 4- hour chart,
- 100 day moving average, and the
- 38.2% retracement of the August trading range
All those levels come between 0.6642 and 0.66499 (call it 0.6650). Getting below that level would have traders looking down toward its 200-day moving average. That level comes in at 0.6615. The last time the price traded below the 200-day moving averages back on August 15. THe price also based against that moving average on that trading day before moving higher (peaking on August 29).
So sellers are banging against support. Can they get below that level and open the door for further downside probing toward the 200-day moving average?
If support does hold, topside resistance comes in at 0.6697. The 100-hour moving average is at that level, and there are other swing levels near that level as well (see red numbered circles on the chart below). .
This article was written by Greg Michalowski at www.forexlive.com.
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