Forex technical analysis: AUDUSD keeps the sellers more in control
Test of 200 hour MA held. Now testing the lower 100 hour MA and a key swing low area.
The AUDUSD moved higher in the Asian session and that move took the price above the 100 hour MA, the 100 day MA, but stalled at the 200 hour MA. The significance of that hold? Back on October 4 and October 5, the pair stalled against the level. When there is a pattern, the level becomes a target that can stall the market. Today that pattern stalled the pair and the price rotated lower.
We are currently down testing a lower pattern. That is the swing lows from the last few days. They come in at 0.7773-748. There have been 6 different lows in that range. The 100 hour MA (blue line) is also in the area at 0.7776.
Does support hold?
At least on the first look I would expect buyers to lean. They can simply put a stop below the level.
A battle is on. The price action patterns are pretty plain to see. They help define the battle lines. At some point the buyers or the sellers will take more control and win the battle. At which point, look to trade the momentum break away.