AUDUSD reached key technical target and backed off. MA target approached on the downside

The rebound from today's low extended from 0.6991 to 0.7026, carrying the pair above several significant technical hurdles. The rally pushed through last week's high at 0.7021, cleared a swing high from June 19 in the same area, and briefly traded above the 38.2% retracement of the decline from the May high to the late-June low at 0.7022. However, buyers were unable to sustain momentum above that cluster of resistance. The failure to hold the breakout gave sellers the green light to re-enter, with the move aided by broad U.S. dollar strength as USDJPY continues to trade at fresh 40-year highs. The ensuing decline has taken the pair back toward the 0.7000 level, with today's low reaching 0.7002. Standing in the sellers' way is the rising 100-hour moving average, currently at 0.69962. Given that buyers have successfully defended this moving average during each of the past two trading days, it remains the key technical pivot for the near-term outlook. Stay above the 100-hour moving average, and the bias remains tilted toward another attempt at the 0.7021-0.7022 resistance cluster. A decisive break above that area would strengthen the bullish case and shift the focus toward higher targets. Move below the 100-hour moving average, however, and the technical picture would become more bearish. That break would expose the 200-hour moving average at 0.69729, followed by a key swing area between 0.6962 and 0.6978, where buyers would need to make another stand. For now, the market remains at an important crossroads. Buyers continue to control the short-term bias while the pair holds above the 100-hour moving average, but sellers earned some credibility by rejecting the breakout above the 0.7022 resistance cluster. The next meaningful directional move is likely to be determined by whichever side can force a sustained break of these key technical levels with momentum. This article was written by Greg Michalowski at investinglive.com.

• The rebound from today's low extended from 0.6991 to 0.7026, carrying the pair above several significant technical hurdles.
• The rally pushed through last week's high at 0.7021, cleared a swing high from June 19 in the same area, and briefly traded above the 38.2% retracement of the decline from the May high to the late-June low at 0.7022.
• The ensuing decline has taken the pair back toward the 0.7000 level, with today's low reaching 0.7002.
• Stay above the 100-hour moving average, and the bias remains tilted toward another attempt at the 0.7021-0.7022 resistance cluster.
• That break would expose the 200-hour moving average at 0.69729, followed by a key swing area between 0.6962 and 0.6978, where buyers would need to make another stand.