AUDUSD tests trendline support on hourly chart

Swing area also tested

AUDUSD is one of the weakest of the major currencies and in the process is testing a lower trendline on the hourly chart as well as a tipping area in the last few days between 0.7768 0.7772. A move below this area would increase the bearish bias.

Swing area also tested

The downward movement from the high cap near the 0.78373 level (see blue numbered circles) has now seen the price dip below its 100 hour moving average at 0.77981 (blue line in the chart above ). To regain control of the sellers, it would have to come back above the 100-hour moving average. Above that and a break of the 38.2% retracement at 0.7812 would cause traders to look back towards the ceiling area at 0.78373. The 200 hour moving averages are even higher at 0.78543.

On the downside, a break below the trendline / swing zone and traders will aim for 0.77558 followed by yesterday’s lows near 0.7736.

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