AUDUSD capped by 100-day MA, assist take a look at underway

The AUDUSD is as soon as once more struggling at acquainted resistance close to its 100-day shifting common. Earlier at this time, the pair moved greater however stalled simply shy of the 100-day MA — a stage that additionally capped rallies in February and noticed two failed breakouts in March. Sellers leaned towards it once more, reinforcing the barrier and shifting momentum again to the draw back.

From a technical perspective, the newest transfer decrease has taken the value all the way down to a key confluence of assist:

• The 61.eight% retracement of the transfer up from the February low

• The 100-bar shifting common on the Four-hour chart

• A previous swing space (see pink numbered circles)

This zone is presently being examined and represents a possible pivot for the short-term bias.

What’s subsequent?

• Break beneath the present assist space (round zero.6224) would improve bearish strain and goal the subsequent assist close to zero.61779 all the way down to zero.61608 (50% and swing space)

• Maintain and bounce from this space may see one other push greater — however bulls would want to clear the 100-day MA close to zero.63935 to flip the bias extra convincingly

With the broader development nonetheless biased to the draw back and repeated failures on the 100-day MA, sellers keep brief time period management — however this assist zone is vital.

This text was written by Emma Wang at www.ubaidahsan.com.



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