AUD/USD slipped below its 200-hour moving average today before buyers defended the 0.7139 floor from last week's lows and pushed the pair back toward 0.7158. The pair now faces a fresh test of that broken moving average, currently near 0.71635, that will help set the near-term direction.
Sellers break the average, then lose steam
AUD/USD is moving back toward its broken 200-hour moving average, setting up a fresh test for both buyers and sellers. The pair had largely used that average as support since breaking above it on July 30, defending the level through several tests and modest breaks.
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. However, sellers leaned against that level, took back control, and drove the price below the 200-hour moving average, opening the door for a sharper move lower.
Buyers defend last week's lows
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, bringing the 200-hour moving average — currently at 0.71635 — back into focus.
What each side needs next
Sellers now have a chance to lean against the 200-hour moving average again. A move back above it would increase the risk that their break lower is losing momentum. But staying below keeps the downside 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. That level sits at 0.7098.
For buyers, holding last week's lows was an important first step. Still, they need to reclaim the 200-hour moving average at 0.71635 and then the 100-hour moving average at 0.7174. Clearing both would shift the technical bias back in their favor and put last week's high near 0.7207 back in play.
Source: Investinglive
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