AUDUSD steps its way down this week. Technicals lead the way lower.

Technical Analysis

The AUDUSD started to show cracks in its bullish bias last Friday, and that crack led to a bigger and bigger move as technical levels were taken out one by one.

First, it was the 100-hour moving average (higher blue line) and channel trendline. That led to a break of the 200-hour moving average. The price traded up and down on parts of Tuesday, Wednesday and Thursday, but kept mostly below the 200-hour moving average on moves higher. In trading today, the price has tumbled below the:

  • 38.2% retracement of the move up from the May 31 low,
  • 100-day moving average of 0.6713,
  • 200-day moving average at 0.66913, and more recently the
  • 50% midpoint of the essay move higher at 0.66785

Sellers keep on pushing.

What would ruin the bearish bias now?

Getting back above the 200-day moving average at 0.66913 and the 100-day moving average of 0.6713 would give buyers some hope. Absent that and sellers would look to target a swing area between 0.6637 and 0.6643, followed by the 61.8% retracement of the move up from the May 31 low at 0.6626 as a next major target.

AUDUSD steps lower this week. What would ruin the sellers?

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