The AUDUSD fell sharply yesterday breaking below a target support level near 0.6696. However, the break was short-term and the price reestablished support against the level before moving higher. The run higher extended back above its 100-bar moving average on the 4-hour chart at 0.67236, but ran into resistance sellers near a swing area between 0.67508 and 0.67604.
The inability to get above that level has pushed the price back down and also below the 100-bar moving average on the 4-hour chart. If that can be maintained, the sellers will make another run at the 0.6696 level and see if sellers can keep the pressure on for a potential move toward a key cluster of support defined by the:
- 38.2% of the August run higher at 0.6642.
- 200 bar moving average on the four hour chart and 0.6642
- Rising 100 day moving average at 0.66385
That area will be a tough nut to crack on a test.