The AUDUSD ran into an important technical barrier during the European session, as price action stalled against a swing area between 0.66247 and 0.66351. The last 2 trading days have found resistance sellers within that area. Sellers were quick to take advantage of that resistance, leaning against the zone at session highs and steadily forcing the pair lower from there.
That downside momentum has now carried the price through two major technical markers: the 200-hour moving average at 0.65868 and the 100-hour moving average at 0.65915. The break below both averages represents a meaningful shift in near-term bias. What had been acting as support is now expected to act as close resistance on any corrective moves higher. As long as the pair remains below this area, the technical outlook will tilt in favor of the sellers.
Looking ahead, the next key downside target comes in at a swing level near 0.65735. A move through that zone would then expose the 50% midpoint of the rally from the August low, a level that proved its importance back on September 9, when buyers successfully defended it. With both a Fibonacci retracement and prior swing low converging, this area becomes a critical decision point if the downside momentum extends further.
For now, the story is straightforward: sellers are in control below the moving averages, and the burden shifts to buyers to reclaim lost technical ground. Unless that happens, the path of least resistance remains to the downside.
