100 hour MA tested.
The AUDUSD has continued it’s run lower that really started with a technical hold against the high from yesterday. When that level stalled the rally today, the selling started (see earlier post).
The pairs momentum started to pick up steam with the fall in stocks which led to risk off sentiment.
The fall see the price fill the gap from last week’s highs and this week’s lows. That gap was between 0.73437 and 0.73458. The price also fell below a swing area from 0.7337 and 0.73437, and finally the 100 hour MA at 0.73336.
We currently trade back above the 100 hour MA. That will be a level to retake to the downside if sellers are to take more control (with 0.73186 – the 38.2% – the next target).
Risk for shorts (assuming the high is in place at the 3 highs) should keep a lid near the underside of the broken trend line and the top of the yellow area. Stay below and the shorts are taking away some of the bullish sentiment seen since the double bottom at 0.7198 from November 27.