The AUDUSD has experienced increasing downward momentum after breaking below its 200-day moving average of 0.67438 (visible as the top green line on the hourly chart). This momentum intensified after breaching the 50% midpoint of of the week's trading range at 0.67118 and is now testing the 0.6700 level, where the converged 100 and 200-hour moving averages are located (lower blue and green lines). Yesterday, the price found support at the 200-hour moving average before moving sharply higher.
With the two moving averages converging and the trading range extended at 105 pips (low to high range) compared to the 76-pip average over the last month of trading, there may be some short-term buying interest at this level (with stops on a break lower). However, on the upside, resistance is now present up to 0.67296. As a result, it is expected that the market bias will shift from buyers to sellers.
On a break of the 0.6700 area, traders will look toward a swing area between 0.6676 0.66797 and below that a swing area near the 0.6650 level.
This article was written by Greg Michalowski at www.forexlive.com.
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