The AUDUSD pushed higher today, but the rally once again stalled near a key technical ceiling. The price tested the 50% retracement of the move down from the May high at 0.71774, and sellers leaned against that level to keep the upside capped. That area also lines up with prior swing highs, making it a natural resistance zone for traders looking for clues on the next directional move.
On the downside, the 100 and 200 hour moving averages have converged near 0.7149, creating a key support and bias-defining level today and going forward. The pair traded around that zone during the European morning session, and buyers were able to defend it for now. As long as the price stays above the converged MAs, buyers remain in play with hopes of another run toward the 50% retracement resistance.
If buyers can extend above 0.71774, the focus shifts toward the 61.8% retracement near 0.7200 and then the swing area closer to 0.7220
