AUDUSD tumbles lower and back below 100 day MA and swing area

The AUD/USD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term has seen trading action above the 100 day MA over the last 5 trading days. The last two days, saw closes above the key MA risk defining target. That was the case back in August when the price also traded above and below the MA line, but fell short of the 200 day MA and fell back below. At that time, there were also two days where the buyers had their short after closing above the key MA. But they failed too.

So today when the price fell below the MA level, buyers turned to sellers and that momentum has continued in the early US session.

Looking at the hourly chart below, you can see the selling momentum pick up steam below the 100 day MA after earlier in the Asian session the low bottomed against the level and bounced. Admittedly, the price moved back above the broken 100 hour MA (blue line currently at 0.6719), but after breaking back below that MA, followed by the 100 day MA, selling intensified.

What now?

The pair has a 117 pip Pip In forex markets, a pip is a percentage in point or price interest point (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally priced to four decimal places – a pip is one unit of the fourth decimal point, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is one unit of the second decimal point. Pips adhere to a rate of change that may be related to a value change in a position of specific currency rates. Forex is traded In forex markets, a pip is a percentage in point or price interest point (pip), reflecting a unit of change in an exchange rate. Major currency pairs are traditionally priced to four decimal places – a pip is one unit of the fourth decimal point, or 1/100 of a cent. The exception in this case is the Japanese yen, in which a pip is one unit of the second decimal point. Pips adhere to a rate of change that may be related to a value change in a position of specific currency rates. Forex is traded Read this Term trading range so far today. That is just around the 22 day average of 119 pips. So there could be some slowing of the momentum.

The problem with that is pair is in the "no-wheres land" on the hourly chart. The next key target on the downside will be the 200 hour moving average at 0.66071. The low price has so far reached 0.6635. The 38.2% retracement of the move up from the November 3 low cuts across just below that level at .0.6598.

So although the internal clock of what is normal may give cause for pause, the path of least resistance remains to the downside with the 200 hour MA and 38.2% (and 0.6600 natural support) as better support.

On topside, the 0.6678 is the 38.2% of the range today. The last spike high off the earlier low reached 0.6668. Those levels will be eyed for short term technical resistance now.