The AUDUSD has continued the upside momentum that began on Friday, when the pair successfully attracted buyers against its 100-day moving average at 0.65175. That bounce provided a solid technical foundation for a rally that extended into Friday’s close and carried over into today’s Asia-Pacific session.
During the session, the high price reached 0.65725, where sellers stepped in. That level is technically important — not only does it correspond to the 100-hour moving average, but it also lines up with prior lows from last Thursday and Tuesday, strengthening its role as a key resistance area. The rejection from that level pushed the price lower, back toward the low of a swing area at 0.6559 and the 50% retracement of the move up from the August low at 0.65603.
At present, the pair is trading near 0.6562, caught between well-defined support and resistance. On the topside, the 100-hour moving average at 0.6572 remains a clear resistance target. On the downside, support is close by at the 0.6559–0.6560 area, which includes both the swing area and the 50% midpoint.
The battle between buyers and sellers will hinge on a momentum break of one of these levels. Dollar sellers will be looking to defend support at 0.6559 and push for a break above the 100-hour moving average to confirm upside momentum. Meanwhile, dollar buyers will want to see 0.6559 broken decisively and held below, which would open the door for a deeper corrective move lower.
