AUDUSD moves to test swing low area

Swing low area comes in at 0.71319 to 0.71367

The AUDUSD has reversed lower in trading today. 

AUDUSD moves to test swing low area

The run to the downside started after a brief and unsuccessful break above its 100 hour moving average (blue line in the chart above) at 0.7209.  The inability to move higher turned the buyers from the break above, into sellers on the failure.    The subsequent moves back below the 50% at 0.71915 and the 200 hour moving average (green line) at 0.71839 gave sellers more confidence to push lower. In addition overall dollar buying has helped push the price even lower in the New York session.
The run to the downside has moved to a swing area defined by recent lows ahead of the August extreme low at 0.71083. That area comes between the 0.71319 and 0.71367.  Often times after bottoming (like on August 12), the price action will base ahead of the extreme low levels.  I would expect buyers to lean against the level like they did yesterday with stops on a break below.
Sellers are more in control. However key support should give the sellers pause for cause (at least temporarily) as risk can be defined and limited against the area.

For bank trade ideas, check out eFX Plus

Leave a comment