AUDUSD buyers today ran into the 100 hour MA and reversed lower

The AUDUSD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term fell yesterday closing below its 61.8% retracement of the move up from the March 15 low at 0.7353, and below a swing area between 0.73675 and 0.73799 (see post here from yesterday).

In the Asian Pacific session, the price started to extend into that swing area (see yellow area and red numbered circles) and eventually was able to break above the high of the swing area (at 0.73799). However, the buyers above that area, ran into the falling 100 hour moving average (blue line currently at 0.73984). Sellers leaned, and the AUDUSD price started to move back to the downside

The AUDUSD's move lower, saw the price retest the 61.8% retracement at 0.73536. The price dipped briefly below the level but has since found support buyers against the level.

The pair's price has moved back higher and currently tests the high of the swing area 0.73799. Move back above that level, and the 100 hour moving average becomes the focus once again (at 0.7394).

Clearly the ups and downs are starting to settle between technical levels. The buyers and sellers are battling it out.

What next?

Although the price is higher on the day, the inability to move back above the 100 hour moving average will remain a concern given the recent move lower since peaking on April 5. For buyers to feel more comfortable, getting above the 100 hour moving average and staying above is required.

Conversely, sellers have also made their runs (and tries) to the downside below the 61.8% retracement over the last two trading days, but have NOT found much success in extending the moves.

As a result, traders will be looking for the next shove above the aforementioned extremes, with the swing between 0.7367 and 0.73799 area acting as the middle ground for intraday bias clues.

PS. In other markets, US stocks have started to move to the upside with the Dow currently up 290 points or 0.86%. The NASDAQ index is also moving to the upside up 97 points or 0.73%. The moves come despite the continued upward momentum in yields. The 30 year yield is now trading at 3.011% up 6.7 basis points.