The AUDUSD buyers had their shot, but missed. The price moves back toward 200 day MA

In the above video, I speak to the technicals that are driving the AUDUSD in trading today. The buyers had their shot. Sellers are taking back control. Can they keep the momentum going?.

Below is a summary of those technicals.

AUD/USD Technical Analysis

Key Break and Reversal

Yesterday, the AUD/USD broke below its 200-day Moving Average (MA) at 0.6628 and fell through the swing area support (0.66189-0.6628). However, the breach was short-lived. The low price reached 0.66134 and bounced.

Current Market Dynamics

Today’s USD selling (AUDUSD) has propelled the price back above:

• 200-day MA (0.6628)
• 50% of the move up from the August low at 0.6645

But failed near the high from last week.

The price has rebounded to last week’s low at 0.66578 (high reached just above the level at 0.6660) but momentum faded and the price has moved back lower. The price is back below the 50% at 0.66451 now..

Key Levels to Watch:

• Resistance: 0.66578 (last week’s low)
• Next target on a break: 0.66949 (100-day MA)
• 50% retracement of the move up from the August low: 0.6645
• Move below and the 200 day MA and swing area at 0.6628 and 0.66189 to 0.66279.
• Break below 0.66189 and the door opens to natural summort at 0.6600 followed by 61.8% of the move up from the August low at 0.6575

Market Implications

Buyers tried to move higher but failled.

1. Move below 200 day MA at 0.6628 will be more bearish
2. It would take a move back above 0.66578 to take the pressure off the buyers and lead to more upside corrective probiing (with 100 day MA at 0.66949 a potential target.

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