The AUDUSD prolonged to the upside earlier this week after the CPI information and broke above the
- 100-day shifting common,
- 38.2% retracement of the transfer down from the July excessive, and a
- Swing space between 0.6500 and 0.65229.
However the momentum couldn’t be sustained and yesterday noticed the value transfer back to the draw back, below the 38.2% retracement, below the swing space, and additionally back below the 100-day shifting common at 0.6489.
The momentum to the draw back yesterday stalled simply forward of one other swing space between 0.6445 and 0.6455. The subsequent transfer to the upside as we speak noticed the value transfer as much as retest the damaged 38.2% retracement (in the center of the aforementioned swing space) however couldn’t go any additional.
What subsequent?
The value is back below the 100-day shifting common at 0.6489. With the incapacity to get above the 38.2% retracement, and the value below the 100-day shifting common, the sellers are extra in management.
That doesn’t imply that there can’t be a reversal, however till the 100-day shifting common and 38.2% retracement are damaged (particularly after the incapacity to take action as we speak), the patrons and sellers are lodged in additional of a battle with the sellers profitable.
For sellers prepared to make that bearish wager, the 0.6445 – 0.6455 stage turns into the subsequent draw back goal.
