Price broke below 0.7453 yesterday. Back up retesting that level
The AUDUSD fell below a low swing area at 0.7453 yesterday. That level had confined the pair on the downside over the last 10 or so trading days. The price had been trading between 0.7453 on the downside (see red numbered circles and red box), and 0.75549 (which also responding with the 200 day moving average) at the highs.
The run lower yesterday saw the price first move below the 100 hour moving average, then 200 hour moving average (blue and green lines). The selling continued and took the price below the 0.7453 level swing low level. Selling momentum increased as the bias turned more bearish.
In today's trading, the initial move was back up to test the bottom of the red box, and found sellers. The move lower took the pair to a new corrective low. That low stalled just above the 38.2% retracement of the move up from the September 29 low at 0.74078. The low reached 0.7411.
The move back to the upside on dollar selling as the Fed chair speaks, has taken the price back up to retest that break level at 0.7453. The high price just reached 0.7455 - just above the level - but has come off. Resistance tested. Resistance stalled the rise.
Technically, stay below that old red box/consolidated area, and the sellers remain in control at least in the short term. Having said that, on the downside getting below the 38.2% retracement at 0.74078 is still a minimum retracement target that needs to be broken - and remain broken -if the bias is to tilt more to the downside.
