The AUD/USD pair reached session highs, surpassing two of the four key technical levels: the 50% retracement of the move down from July at 0.6473 and the 100-bar moving average on the four-hour chart at 0.6577. The current price is trading at 0.6586.
Next targets are the 200-day moving average at 0.6592 and the 100-day moving average at 0.6600, which is also a natural resistance level. With two of the four technical levels already broken, the question is whether the buyers can maintain the momentum.
For traders who are trading at lower levels, this is an opportunity to take some profits against these technical levels and re-enter if the price breaks the 0.6600 level. Sellers can also count on the 0.6600 level, hoping that the price will reverse with sellers outperforming buyers at this risk-defining level. Alternatively, traders may hold their long positions, anticipating a break of the 0.6600 level.
When multiple technical levels come together, it indicates a key area with limited risk, which attracts traders’ attention.
In a similar video I talked about the Masters and its importance, you can watch this video here.
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