The pair finally broke outside the 97 pip range that kept the pair contained for 10 days but failed
The AUDUSD has returned back to its 100 and 200 hour moving averages between 0.7372 and 0.7378. The move back to the downside came after the pair finally broke out of the 97 pip trading range that contained the market between a low of 0.73165 and 0.74130 over the last 10 or so trading days.
However, fundamental news from the record ISM service index, and a tilting toward bearish comments from the Fed Vice Chair Clarida, sent the price back to the downside (higher USD), and back toward the hourly MA level.
Going forward, it will take a move below – and stay below – the MAs now to increase the bearish bias. If done, the lows from yesterday at 0.73605 and 0.7354 would be the next target. Below that and traders will eye the 0.73306 to 0.73416 swing area (blue numbered circles.
For close risk watch the 0.7387 to 0.73905 as resistance (see red numbered circles).