AUDUSD reverses the declines from yesterday and runs into a cluster of resistance

The AUDUSD fell off sharply yesterday, taking out the low from March 24 in the process at 0.66253. The low price reached 0.66186 before rotating back to the upside and closing the day at 0.66413.

In the Asian session today, the price continued its move to the upside getting above a swing area between 0.6649 and 0.66526 and running toward the next key target area defined by:

1. A swing area between 0.6676 and 0.66797 including the high from yesterday at 0.66795
2. 50% retracement of the range since the March low at 0.66781
3. Falling 100 hour moving average (blue line in the chart above) at 0.66797 (at the time of the test)

The high price today reached 0.6679 and found willing sellers. Sellers leaned as risk could be defined and limited.

The price fall today moved down to a lower swing area defined by swing lows on the hourly chart from April 3, April 6, April 7 and again during yesterday’s trade. That area comes between 0.6649 and 0.66526. The low price extended just below that level today to 0.6648

We are now seeing a bounce back toward the falling 100 hour moving average which is now lower at 0.66742. The current price trade 0.6666.

So buyers and sellers are battling it out between swing areas and the falling 100 hour moving average.

• The buyers did their best to retrace the full move to the downside from yesterday’s trade, but could not keep that momentum going.
• The sellers more recently could not get below the next downside target as well.

Traders will now look for the next shove which will either take price above 0.66797, or below 0.6649.