The AUDUSD had a volatile up and down month in May, but rebounded into positive territory by the close of the month yesterday.
The 100 day MA loomed above and after a dip in the Asian session today, the price moved higher to test that MA in the early US session. The 100 day MA comes in at 0.72286. The high price today reached 0.7230 just above that level by 1.4 basis points.. Sellers came in and pushed the price back to the downside.
The better US data, led to higher rates, lower stocks and the a higher USD. The AUDUSD fell lower in response, but found support buyers against the lower 100 hour MA at 0.71625. The low price reached 0.71645. The current price is trading at 0.71675.
What next?
With the 100 day moving average stalling the rally above, and the 100 hour moving average stalling the decline below, traders have defined the bookends for support and resistance.
A move below the 100 hour moving average would have traders looking toward the low from yesterday (and 38.2% retracement) at 0.71468. Below that and a swing area between 0.7117 and 0.71323 is home to swing highs and lows from last week and also the rising 200 hour moving average which currently comes in at 0.71224 (and moving higher).
Hold support, and a move above the highs from Monday and Tuesday near 0.7203 would have traders looking once again toward the 100 day moving average at 0.72298. The 50% midpoint of the move down from the April high at 0.72449, and the 200 day moving average currently at 0.72566 are also topside targets.
Needless to say there are a lot of technical levels in play between 0.71224 below and 0.72566 above. Between those levels sits on interim levels that traders can use to define the shorter-term bias. The 100 hour moving average at 0.71625 is a key barometer on the downside. The 0.7203 level above is the close is interim resistance level.
Be on the lookout for breaks with momentum.