Level should find some resistance
The AUDUSD is another pair today that saw a gap down open, followed by a run lower.
For the pair, the price fell below the 200 hour MA (green line) and had an important retest of that MA line before running lower (see chart above). That MA line comes in at 0.75475.
The tumble from the 200 hour MA took the price to a low of 0.7461 before rebounding over the last 4 hours. That rise higher has taken the price back toward its 200 hour moving average. Key resistance. The price high has so far reached 0.75415 - about 6 pips short of the key 200 hour moving average level.
I would expect sellers to lean against the 200 hour moving average with stops on more momentum above. The 100 hour MA at 0.7580 would be the next key target on more upside momentum.
ON the downside, the 50% of the move up from the December 7 low comes in at 0.75055. That is also near a swing low from December 15. Move below would give sellers more confidence that the correction is likely over. Hold and the battle is on between the 50% below and the 200 hour MA above. .
