AUDUSD trades to a new session low. Looks toward 50% midpoint of the May trading range. | Forexlive

The AUDUSD is trading to a new session low at 0.66529. The pair has moved back into the trading range from after the RBA rate hike yesterday. Earlier today the price broke to a new high going back to mid-May.

That move higher yesterday took the pair above the 50% midpoint of the May trading range, and also the high prices from both Friday and Monday at 0.66376.

The high price yesterday reached 0.66834 before rotating back down to retest the 50% midpoint. The corrective price decline yesterday got within 4 pips of that midpoint yesterday before rotating back to the upside (at 0.6641 versus 0.66376).

In trading today, after up-and-down price action in the Asian session, the price moved higher and above its 200-day moving average at 0.66914 in the European morning session (it was the first move above that moving average since May 11). It also extended above a swing area going back to May 11, May 12, May 15, and May 16 between 0.6704 and 0.67092 (see red numbered circles in the chart above).

That break failed and when the price moved back below the 200-day moving average, buyers turned to sellers and the price has been falling lower since then.

What next?

The next major target for further selling will be the aforementioned 50% retracement of 0.66376. Before that was low from yesterday at 0.66416. A move below that level would then have traders looking toward the rising 100-hour moving average at 0.6627. The price moved above that moving average level back on Thursday of last week.