AUDUSD bounces and retests 100 day MA. Seller lean against the level.

Earlier today I wrote:

• AUDUSD: The 50% midpoint of the move up from the August low comes in at 0.6645 and the low reached 0.6650 at the start of the new trading day today. The bounce higher has moved to a swing area between 0.6685 to 0.6695. At the 0.6695 level is also the key 100 day MA. The price needs to stay below that level today and going forward if the sellers are to remain more in control. The high today reached 0.66918 [so far}. So support and resistance held the range today.

The price moved a smidge higher in the early US session reaching 0.66946 – just below the 0.66952 level. The price has moved lower and trades at 0.6682 currently.

Traders who like the downside for the AUDUSD have their shot against the 100-day MA and swing area. If the price can stay below that level, downside probing can continue. THe low from last week at 0.66578 and the 50% midpoint at 0.6645 are downside targets.

Conversely, if the 100-day moving average is broken, sellers are likely to be disappointed on the failed break to the downside, and look for higher levels with a broken 38.2% retracement at 0.6715. Above that, and a swing area between 0.6742 and 0.6760 would be targeted followed by the 100 and 200-bar moving averages on the 4-hour chart (see higher blue and green lines).

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