AUDUSD falls back below MA lines. Buyers give up. Sellers take back more control.
Disappoint showing up in the price action today.
The price of AUDUSD has fallen back below its 100/200 hour MAs at 0.73726 and 0.7362 respectively. IN the process, the bias has shifted more to the downside for the pair.
The move lower today is showing the disappointment in the price action this week. After trading up and down on Monday, Tuesday and Wednesday, the AUDUSD’s price made a run to the upside yesterday.
That move took the price to – and above – the 38.2% of the move down from the July high to the July low at 0.74072.
The high price, however, could only reach 0.7413 – 6 pips above that minimum retracement level. Moreover, the price action kept breaking above the July 22 high near 0.7400, and failing.
Today, there was a final failed push above that area (but below the 38.2% level), and buyers turned to sellers. The run below the 100/200 hour MAs is the latest bearish push.
Going forward, it will take a move back above the 100/200 hour moving averages to tilt the bias more to the upside again. Absent that, and traders will start to target swing levels at 0.73416, 0.73364 and 0.73306. The low for the week reached 0.73165. Finally the low for July is at 0.72889.