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AUDUSD rallies into moving average resistance area


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100 and 200 hour moving averages at 0.67647 to 0.67688

The AUDUSD tumbled lower in early Asian trading on the back of the weekend news. The low extended all the way to 0.66887. 

That move fell below a lower trend line on the hourly, but fell short of the August 7 low of 0.66769.  The prise snapped back higher, erasing declines (closed at 0.6748 on Friday). The high price on the day has, however, found willing sellers against the pairs 100 and 200 hour MAs in the 0.67646 to 0.67687 area (see blue and green lines and the yellow area).  Sellers were leaning against the area as risk could be defined and limited. The highs on Friday and Thursday stalled near those levels as well.  It will take a move above each of moving averages (and stay above) to give buyers more bullish confidence from here.  
On the downside now, the 0.67566 level is the broken 61.8% retracement of the move down from last week’s high. A move below will have traders looking toward the close from last week at 0.6748 for support buyers.  Below that 0.6735 was a swing low going back to August 14 and again on Friday.  If the price moves below that old floor, I would expect the buyers to give up the upside idea. 
So sellers area leaning against the 100 and 200 hour MAs above, but there is downside work to be done by those sellers.    

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