Yesterday, the break failed
The AUDUSD has cracked back below its 200 hour moving average. Recall from yesterday, the pair traded above and below the moving average for 4 consecutive hours before giving up on the break and moving back higher. The run to the upside extended above a swing area between 0.7768 and 0.7771 but when that area was rebroken in the last hourly bar, the buyers turned to sellers and the price tumbled lower.
Sellers will now want to see the 200 hour moving average hold resistance. The next downside targets would come in at Friday's low at 0.77179, followed by the 38.2% retracement and low from last Thursday near 0.77122.
If sellers are to take more control, getting below that 38.2% retracement would be a minimum corrective target to get to and through.
For now, the focus is on the 200 hour moving average. Stay below is more bearish.
