Run higher today failed and helped to downside
The AUDUSD moved to the highest level since July 2018 today taking out the previous year high at 0.74526. The move reached 0.74845. That high tested the the July 2018 swing high at 0.7483. Sellers were leaning near that target and when the price fell back below the 0.74526 old 2020 high, the selling intensified as buyers turned to sellers.
Drilling to the hourly chart below, the 0.74488 to 0.74529 area had been a pause area for the pair coming into today. The initial move higher did stall in that area (see red numbered circle 3), but on the break, stops are triggered and the price squeezed higher to the target from the daily chart.
The run lower use the same swing area as a bullish/bearish barometer. When the price fell below, selling intensified as the bias tilted back to the downside.
The low price for the day, did fine support near the 100 hour moving average (blue line in the chart below) and an upward sloping trendline.
What next?
With the pair failing on the break of the swing area at 0.7448 to 0.74529, that is now resistance again. There should be sellers against that level with stops on a break above.
On the downside, the 100 hour moving average and upward sloping trendline are levels at if broken would increase the bearish bias.
