The AUDUSD sellers made a play to the get outside of a swing area on the downside at 0.6575. The low price reached 0.6584. that low was also just above the 38.2% retracement of the move up from April at 0.6579. Buyers leaned against the low area. The price has rebounded higher over the last five or six hours currently trading at 0.6612.
With the price moving higher, it brings into play a cluster of moving averages including the 100 and 200-hour moving averages near 0.6626, the 200-bar moving average on the 4-hour chart at 0.66285. Just above those levels sits the 100-bar moving average on the 4-hour chart at 0.6635.
In the new trading day, that area between 0.6626 and 0.6635 will be the key barometer for both buyers and sellers. If the price is able to reach – and breach – those levels, that would increase the bullish bias.
Conversely, if the price stays below that area, the sellers remain more in control.
Although the prices trading between the support and resistance, it is important to understand the roadmap going forward. Where exactly does the bias shift? Where is resistance? Where is support?
Today we know that the support level held. WIll that give the buyers more confidence to probe further in the new day?