AUDUSD looks to close the day back below its 100 day moving average

Technical Analysis

The  AUDUSD  moved lower into the North American session but found support buyers against its 100 day moving average (and 61.8% retracement of the move up from the February 24 low). After spending six or so hours with buyers leaning against that key moving average, it was eventually broken (see earlier post).

That break, led to more selling as buyers against the moving average, turned to sellers below the moving average (see hourly chart above). The next key target on the hourly chart comes in at the 0.71679 level. The low corresponds with the swing lows from February 28, and also a swing low level going back to February 24

Taking a broader look at the daily chart below, back in January and again in February, the price tried to move above its 100 day moving average only to fail fairly quickly. Finally, on February 28 the price broke above and stayed above until today.

The move back below the 100 day moving average is a more bearish move technically. Stay below keeps the bears fully in control.

On the daily chart the major target area comes between 0.7079 and 0.71038 (see yellow area and red numbered circles on the chart below). That area would be the next target if the support from the hourly chart at 0.71679 is broken.

The move below the 100 day moving average is a key technical break. It tilt the bias more in favor of the sellers. Stay below and there should be more downside probing with hourly support targeting 0.71679. On the daily chart, the area between 0.70799 and 0.71038 is the next major target support.

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