Friday , 22 November 2024
Home Forex AUDUSD continues the technical steps higher but needs to get above a swing area
Forex

AUDUSD continues the technical steps higher but needs to get above a swing area

The AUDUSD has been stepping higher over the last five or so trading days and in the process has used a series of key moving averages that have increased the bullish bias and provided the roadmap for the move to the upside.

  • 5 days ago, the price based against the 200-day moving average and moved higher.
  • 4 days ago it based against the 200-bar moving average on the 4- hour chart and the 100 day moving average. The price moved higher.
  • 3 days ago the price based against the 200 hour MA and a swing level (near 0.6700). The price moved higher.
  • Yesterday, the price moved above its 100-bar moving average on the 4-hour chart and then based against the level and moved higher

In trading today the price moved above a swing area between 0.6748 and 0.67604, but could not keep the momentum going.

As a result there is some apprehension. That makes sense given the key FOMC rate decision tomorrow.

So what next?

If the pattern continues, traders should continue to find support near the last broken level. That would be the 100 bar moving average on a four hour chart at 0.6732. A break below that level would likely see more selling on the topside break disappointment.

Conversely, raking back above the 0.67604 level, and we should see increase momentum with the high prices from the end of August between that level and 0.68232.

Buyers remain in control, but there was a minor failure on a break today which could lead to more downside probing if support is broken near 0.6732.

This article was written by Greg Michalowski at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

USDJPY stalls the fall today and yesterday at the 100 bar MA on the 4-hour chart

The USD/JPY pair moved lower in the early Asian session but found...

What is the latest tilt for US Treasury Secretary?

The fight for US Treasury Secretary is thought to be coming to...

University of Michigan consumer sentiment final for November 71.8 versus 73.7 estimate

Preliminary 73.0Consumer sentiment 71.8 versus 73.7 estimate. Preliminary 73.0. Prior month 70.5Expectations...

GBP/ZAR Price Forecast: Early-warning signs the short-term trend may reverse

GBP/ZAR has formed a temporary bottom after a steep sell-off.