AUDUSD is lower on the day but finds support buyers near corrective lows from last week
The AUDUSD is moving back toward its broken 200-hour moving average, setting up an important test for both buyers and sellers.
The pair has largely used that moving average as support since breaking above it on July 30. There have been several tests and some modest breaks, but buyers have generally defended the level.
Yesterday, buyers stepped in against the moving average and pushed the price higher into the close. That recovery continued into the Asia-Pacific session, where the pair tested its 100-hour moving average—the blue line on the chart above. However, sellers leaned against that level and took back control, driving the price below the 200-hour moving average and opening the door for a sharper move lower.
The decline stalled near 0.7139, matching the lows from last Monday and Tuesday. Buyers defended that floor and have since pushed the price back toward 0.7158. The rebound brings the 200-hour moving average, currently at 0.71635, back into focus.
Can sellers turn what was support into resistance?
Sellers now have an opportunity to lean against the 200-hour moving average, with a move back above it increasing the risk that their break lower is losing momentum. Stay below, and the downside remains in play, with another test of 0.7139 the next objective. A break below that floor would open the door for a deeper correction toward the 38.2% retracement of the move up from the end-of-July low at 0.7098.
For buyers, holding last week’s lows was an important first step. However, they still need to reclaim the 200-hour moving average at 0.71635 and then the 100-hour moving average at 0.7174. Getting above both would shift the technical bias back in their favor and put last week’s high near 0.7207 back in play.
The buyers held the floor. The sellers broke the moving-average support. The next test of the 200-hour moving average will help determine which side has the stronger hand.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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