The buyers showed up on dips in AUDUSD today but swing area resistance is doing its job.

February 10, 2025 at 06:26PM
The AUD/USD pair experienced a decline in early Asian Pacific trading as markets reacted to the looming threat of tariffs on steel and aluminum. The drop brought the pair close to the rising 200-hour moving average, which served as a critical support level. This is not the first time this level has been tested recently; on Wednesday, the pair also found support at the 200-hour moving average, which helped buyers regain control and push prices higher.

Following the bounce off the 200-hour moving average, the price moved above the 100-hour moving average, signaling a short-term bullish trend. This level has now been tested three times as the moving average continues to rise, providing dynamic support for the pair. Each time the price has tested this level, it has managed to attract buyers, keeping the pair’s upward trajectory intact.

However, the upside momentum faces challenges. The pair has struggled to break above the lower boundary of a swing resistance zone between 0.6287 and 0.63016. This area has proven to be a significant barrier, with the daily high stalling near its lower limit. For the AUD/USD to continue its bullish run, it must break decisively above this resistance zone, which could open the door for further upside momentum.

On the flip side, the 100-hour moving average remains a critical level to watch. If the price breaks below this level, it would signal a weakening of the bullish bias and could lead to a retest of the 200-hour moving average. A failure to hold above these moving averages could shift market sentiment and invite additional selling pressure. For now, the pair’s movement hinges on its ability to clear resistance while maintaining support at key technical levels.

This article was written by Greg Michalowski at www.forexlive.com.