Originally published by AxiTrader
The Australian dollar is at an interesting juncture on the 4-hour charts this morning after bouncing nicely from the lows around 0.7789 to an overnight high around 0.7859.
That high was a little under a downtrend line on this time frame from the start of the run lower at last week's high of 0.7988. And now, at 0.7842 it is sitting just under that line once more.
The AUD/USD is now also under the 200, 100, and 30-period moving averages I use with the 15-period ema sitting currently at 0.7845. And crucially the 38.2% retracement of the last week's sell off comes in at 0.7865/66.
So while a break of the trendline, currently around 0.7851 could see a quick run to that FIbo resistance while price remains below it the downside still appears the most likely course.
Support remains in the 0.7789/93 region where yesterday's low, the bottom of the Bollinger band, and the little trendline from the recent 0.7758 low sits. A break of 89 would target a move to 0.7750/60 and if that breaks then the larger daily time frame would suggest a run to 0.7615.
Here's the 4-hour chart:
Have a great day's trading.