November 27, 2024 at 04:24PM
The AUD/USD moved higher in response to a weaker USD, but sellers stepped in near the falling 100-hour moving average, pushing the price back down. The decline found support at the high of a key swing area, where buyers leaned in and drove the pair back toward the now-converged 100-hour and 200-hour moving averages, both currently at 0.6496.
This confluence of resistance has proven significant, as the price was rejected at these levels yesterday and again today, reinforcing their role as a critical bullish/bearish barometer. A sustained move above these moving averages would signal a more bullish outlook, while staying below keeps the bias bearish.
If the price breaks above the 100-hour and 200-hour moving averages, the next key target would be the 100-bar moving average on the 4-hour chart and the 38.2% retracement of the November range at 0.6530. A move beyond that level could trigger additional upside momentum.
Conversely, if the pair remains below the moving averages and breaks below the low of the swing area at 0.64714, sellers are likely to target the November lows, which lie between 0.64334 and 0.6442. This leaves traders closely watching the battle around these key technical levels for directional clues.
This article was written by Greg Michalowski at www.forexlive.com.
