October 04, 2024 at 05:41PM
The AUDUSD moved sharply lower in US trading today on the back of the stronger US jobs report. The move lower took the price below the 38.2% retracement of the move up from the September 11 low at 0.6819 and also the rising 100 bar moving average on the 4-hour chart at 0.6823.
On the downside, the pair is approaching another key level defined by the 50% midpoint of the move up from the September 11 low, the 200 bar moving average on the 4-hour chart, and a swing level going back to as far as a September 18. That level comes in at 0.67813.
Getting below that area opens the door for further downside momentum.
On the daily chart, the price also moved below the 61.8% retracement of the range since the January 2023 high. That level comes in at 0.68182, and is within a swing area on the same daily chart between 0.6805 and 0.68206.
So the combination of technical levels from the hourly chart and the daily chart sets overhead resistance near 0.6820 to 0.6823. That is going to be the technical ceiling today and going forward. Stay below keeps the bears more in control. IF that is the case, the downside door opens further with a move below 0.67813.
This article was written by Greg Michalowski at www.forexlive.com.
