The pair test the lower swing area around 0.7270
The AUDUSD tried to move higher in the early European session today, but ran into topside trendline resistance and a swing area between 0.7316 and 0.73226. The price rotated down with the overall dollar buying in the US session.
In the process, the price moved back below the 50% of the range since the August 20 low at 0.72915, and moved down to test a swing area between 0.72696 and 0.72775. The low price did reach below that area but has since bounced back higher in trades above the upper end of that swing area.
What now?
The midpoint will be eyed as the resistance at 0.72915. Stay below the midpoint and the bias remains more to the downside. Move above and there still work to be done with the downward sloping trendline cutting across at 0.73135 and the falling 100 hour moving average which has done a good job of containing the rally’s this week at 0.73232.
The AUDUSD close at 0.7349 last week. The high price this week was on Monday at 0.7375. As mentioned, the 100 bar moving average and the downward sloping trendline did stall most of the rallies on Tuesday, and again yesterday and today. Staying below those levels The sellers more control.
