Below 100 hour MA/50%
The AUDUSD is down on the day - making new lows in the last hour of trading. ON the move lower the pair has moved back below the 200 hour MA (green line) and now the 100 hour MA (blue line) at the 0.7145 level. The price has also moved below the 50% of the move up from last weeks low at the 0.71425 level.
That should be bearish for the pair. The concern is the 100 hour MA is a key MA (at 0.7145). It is moving higher. The 50% is also a key level of support at 0.71425. It tends to hold things together - at least temporarily. Finally, there is a broken trend line that has yet to be tested at 0.7135. Yesterday, that line was tested and held. So there is a cluster of support and it can turn things around (or at least lead to a correction).
So shorts intraday may look to lighten up a bit. It does not mean that we go racing higher. It just means that we could see a corrective move.
