The AUDUSD pair failed to stay above the 0.79000 level and broke down under trend line support late yesterday, to test the next supporting trend line at 0.77707. A fall below this area would see a sustained push lower to the 0.77300 level and the February lows at 0.77122. A loss under 0.77000 would target 0.76950 initially, with further support at 0.76400 and 0.76100.
Resistance has been tested today just above 0.78000, with 0.78300 and the 50 and 100-period moving averages at 0.78332. The 0.78441 level is just above, with the 200-period MA above it at 0.78465. The broken trend line is located at 0.78525 and a retest on this line might be enough to set up a later move higher to test Wednesday’s high. A break above that level targets the February high at 0.79881.
EURJPY
This pair has tested support at the black trend line at 129.500 before rebounding higher to resistance at 132.262. Price has since moved lower again towards 130.000. The 200 DMA at 130.906 has provided resistance and a high for today’s candle. This is the median of the current trading range, as price has moved back and forth across it since first contact on February 23rd. Support comes at 130.000, with the black trend line at 129.292 today. Support below can be found at 128.780.
Resistance above the 200 DMA is located at 131.093 and 132.262, with the 50 and 100 DMAs at 132.593. The 133.000 level needs to be taken if the market wants to move on to its February highs. A break above this level completes the first step but there are key levels of resistance at 133.820 and 134.493. The 135.000 level forms the bottom of an area of consolidation used in January up as far as 136.302, with a break above leading to the high at 137.498.
