Home / Forex Treiding / AUDUSD tests 100 hour MA and backs off. Lows from last week tested.

AUDUSD tests 100 hour MA and backs off. Lows from last week tested.


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Buyers are cautious against the 100 hour moving average

the price of  the AUD moved up to test its 100 hour moving average at the 0.67642 level. Sellers, however, leaned against the level and we have seen the price moved back down and to new session lows as well (just fell to 0.67400).  The low is testing lows from last week at 0.67387 and 0.67429.  So far sellers are leaning against the level.  


It is month end/quarter end and the London 4 PM fixing just came and passed. So the price action to the downside may have been impacted by selling into that fixing.
Nevertheless, the holding of the 100 hour moving average on the topside increases that level’s importance going forward. Stay below is more bearish.

Admittedly, the price action last week (and even for a brief moment today in the Asian session), moved above the 100 hour moving average, but ultimately failed (see red shaded areas).
On Thursday and Friday (and again earlier today), the price moved above the 100 hour MA but the breaks were for brief moments of time (2 hourly bars before moving back below the lines). Today’s move was for less than 5 minutes.  

The buyers are having trouble exerting their influence when the price does rise.  Sellers are bending but not breaking. It will take a move above the 100 hour moving average (and staying above) to hurt the bearish bias.
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