The 0.70616-648 is the low swing area from last week
Looking at the hourly chart of the AUDUSD below, the 0.70616-70648 were the lows from last week's trading. The pair moved lower today after the RBA statement (global risks increasing). However those lows from last week, stalled the fall. Remember, the AUDUSD did get a boost yesterday after the China manufacturing data, but did rotate lower into the close.
The correction off the lows took the price above the 100 bar MA on the 5-minute chart below (blue line), but stalled ahead of the next target at the 38.2% retracement (at 0.70887). The subsequent fall below the 100 bar MA has not seen a lot of momentum selling, but the 100 bar MA is holding as a resistance level. That is an upside barometer for traders now. Stay below is more bearish intraday. Move above (and stay above), could see more covering (buying).
On the downside, getting below the floor area from last week, should open up more downside potential.
Sellers in control.
