AUDUSD tests 200 hour MA and bounces modestly. Increases the levels importance going forward.

The AUDUSD is little changed on the day, but the technical picture is setting up an important decision for traders.The pair moved sharply lower Friday after Fed Chair Kevin Warsh’s more hawkish comments at Jackson Hole. An attempt to correct higher today ran out of momentum, sending the price back toward its rising 200-hour moving average at 0.7157.That moving average is the key barometer for buyers and sellers.The 200-hour moving average has provided support on several occasions during the recent move higher. As long as the price remains above it, buyers retain a modest technical advantage. However, a break below—and the ability to stay below—would be something new and shift the bias more firmly to the downside.On a break lower, the next targets would come near the 0.7128 swing area, followed by the 38.2% retracement at 0.7098.Conversely, if buyers continue to defend the 200-hour moving average, they would need to push the price back above the 100-hour moving average at 0.7176 to regain more control. Above that level, the focus would shift toward 0.7194–0.7201 resistance area and the August high at 0.7207.For now, the 200-hour moving average at 0.7157 is defining the battle. Stay above and the buyers remain in play. Move below and the sellers would take greater control. This article was written by Greg Michalowski at investinglive.com.