The AUDUSD moved lower on Friday helped by risk-off sentiment from the tumble in US stocks.
In trading today, selling has continued after a rise in the early Asian session. The fall has taken the price of the AUDUSD to a key technical support level defined by three separate technical tools:
- The 38.2% retracement of the move up from the August low at 0.6642
- 100-day moving average at 0.6644
- 200 bar moving Arizona for our chart at 0.66472
That combination has found willing buyers leaning against that area on two separate dips today including the current hourly bar. Stay above keeps the buyers in play with the help of a rotation back higher toward 0.6696 and the falling 100-hour moving average of 0.67086.
Conversely, break below the level and traders would look toward the 200 day moving average at 0.6615 as the next key target.
This article was written by Greg Michalowski at www.forexlive.com.