The AUDUSD pair attempted to break out above the 100-day moving average this week but was unable to sustain its gains. This resulted in sellers pushing the price back down, maintaining a downward bias as the week concludes.
The pair has moved below both the 100 and 200-bar moving averages on the 4-hour chart, positioned at around 0.6297. As the new trading day approaches, the price has reverted towards these MAs, where selling pressure persists.
Key Support Levels
Currently, the pair has reached key support at 0.6254-0.6268, which has previously provided a floor during trading sessions. A sustained move below this area is necessary for sellers to extend their influence further.
The close risk level for sellers is noted at the 100-bar MA at 0.62959 and the 200-bar MA at 0.63058. A rise above these thresholds may indicate a potential move towards the 100-day MA again.
This analysis points to a market where selling pressure remains dominant. An attempt to push higher ran into resistance, with the price failing to hold above a widely monitored technical level. As a result, downward movement persisted, reinforcing a prevailing bearish sentiment.
The pair has been unable to establish itself above key moving averages on the four-hour chart. When price action retraced towards these points, it met renewed selling interest. Such behaviour suggests traders are using these levels to re-enter short positions, maintaining momentum in that direction.
Market Sentiment And Outlook
A support area just above 0.6250 has become increasingly relevant. This zone has prevented further declines in prior sessions, making it an important reference point. If downward pressure forces the pair through this barrier without recovery, it may signal additional weakness.
For those positioned to the downside, closely watched risk pivots remain near the 100- and 200-bar moving averages. These levels define the short-term balance between selling and buying interest. A decisive move over them could indicate further testing of the longer-term average, potentially shifting sentiment in the process.
With price hovering near previously established support, traders monitoring short-term fluctuations will be watching for changes in momentum. If sellers maintain control, a more extended decline could follow. However, reactions at resistance zones will define whether attempts to reverse course gain traction or are met with continued selling pressure.
