The new high today stalled ahead of its 200 day moving average
The AUDUSD move higher in the Asian session and in the process traded to the highest level since July 6. The high price reached 0.7544. That was short of the falling 200 day moving average at 0.75622. Recall that on Monday, the price moved above its 100 day moving average, then based against the moving average on Tuesday before rotating to the upside. For the week, the price had moved up about 168 pips from the low to high.
The move to the downside today has seen the price move back below a swing area around the 0.7500 level. The low price stalled near 0.7477. That is near the high of a cluster of support target including the:
- 38.2% retracement of the move up this week at 0.74809
- A swing area between 0.7467 and 0.7477 (going back to early September)
- The rising 100 hour moving average and 50% retracement of the trading ranges week which are both near 0.74613
A move below the cluster of support should see further downside probing. The 200 hour moving average is down at 0.74175. The 38.2% retracement of the move up from the September 29 low comes in at 0.7402. That is right near the 100 day moving average as well (remember that level on further selling).
Since bottoming on September 29, the price has moved up about 380 pips over 16 trading days. Today is a correction day. Will the selling continue and start to take out some of the support levels? Or will the dip buyers look at the correction as a buying opportunity?
