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AUDUSD hangs near highs
The AUDUSD last week reached up to test its 200 day moving average near 0.7555. The high prices on both and Thursday and Friday reached 0.75549. Sellers leaned against key resistance, and the price wandered to the downside
The move lower on Friday stalled right against its rising 200 hour moving average (green line) that mimicked the support buyers against the same moving average on Thursday (at a lower level).
Today, the price was able to crack below the 200 hour moving average for the first time since October 6 in the European morning session. However after testing a swing low target at 0.74869, and not been able to move much below that level, the sellers turned to buyers and pushed the price back to the upside.
The move higher took the price back above the 200 and 100 hour moving averages (green and blue lines). The high price today reached 0.7536 which was also near swing highs going back to last Wednesday (see green numbered circles).
Overall, for Monday, there has been up and down in a relatively narrow trading range, with swing levels above and swing levels below holding resistance and support. In between sits the 100 and 200 hour moving averages.
Going forward, the swing levels today will be the break points going forward. Move above 0.7535 and traders will be targeting the key longer-term 200 day moving average at 0.75549 with the break opening the door for further upside probing (that would be a key technical break).
Conversely, move below the 0.74869 level, and traders will start to probe corrective levels on the downside including 0.7475, 0.7453 and potentially down to the 38.2% retracement of the move up from the end of September low at 0.74078.
With the current price above the moving averages, the buyers hold the edge as far as control.