AUDUSD moves to a new high but can the momentum continue?

<p>The AUDUSD moved lower in the Asian session and in the process fell below a swing area near 0.63057. However, the momentum could not be sustained to the low price from last Friday at 0.62858. The price started a move back to the upside.</p><p>The subsequent bounce took the AUDUSD price above a swing area between 0.63269 and 0.63344 (see the lower yellow area on the chart below), and also its 100-hour moving average at 0.6336 (blue line in the chart below). That bounce failed ahead of its 200-hour moving average 0.63622. A new rotation back to retest the 100-hour moving average (blue line on the chart below) and high of the swing area (lower yellow area) ensued, but so far that MA (and swing area) has held support. </p><p>What next?</p><p>If the 100-hour MA can continue to hold support, a rotation back higher toward the 200-hour moving average could be expected. If that moving average can be broken it opens the door for further upside momentum (toward the high price from yesterday's trade).</p><p>The ball is in the buyer's court above the 100-hour moving average, but those buyers have more work to do. A break back below the 100-hour moving average – and the low of the swing area at 0.63269 – would have traders looking back down toward the 0.63057 level and the low price from last week at 0.62858.</p>

This article was written by Greg Michalowski at www.forexlive.com.