AUD/USD turned lower during today's Asian-Pacific session, giving back yesterday's breakout above the 100-day moving average. The pair fell into a swing-area support zone before buyers stepped in, and now faces a defined set of levels on both sides of the range.
AUD/USD turned lower today, erasing yesterday's breakout above the 100-day moving average as sellers regained control of the pair. Buyers had pushed the pair above the 100-day moving average at 0.70505 and rallied to a high near 0.7065, but the move could not hold. During today's Asian-Pacific session, the price slipped back below that average, turning yesterday's buyers into today's sellers.
Sellers push into swing-area support
The reversal capped a week of choppy, two-way action as buyers and sellers battled for control of the pair's moving averages. Selling pressure then drove the pair below the 100-hour moving average at 0.70325 and into a swing area between 0.7020 and 0.70269, where the day's low stalled at 0.7023.
Buyers stepped in against that support, helping the pair rebound back above the 100-hour average. The broader zone has flipped from resistance into support: what capped AUD/USD as a ceiling in June and into July now works as a floor down to 0.7020.
Levels to watch on both sides
A move below 0.7020 would increase the bearish bias and open the door to a test of the 200-hour moving average at 0.70069. A break below that level would shift the focus toward additional support within the mid-July trading range.
On the topside, if buyers build on the current rebound, the 100-day moving average at 0.70505 becomes the first target. A sustained move above that level would expose the 50% retracement at 0.70707. Clearing both resistance levels would give buyers a clearer path toward extending the recovery.
Source: Investinglive
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