Forex technical analysis: AUDUSD tests/stalls in resistance area

Technical Analysis

Author: Greg Michalowski | audusd

8 months have seen a number of highs in 0.77307 to 0.7755 area

The AUDUSD has poked to new 4 month highs in trading today. In the move the price moved above a ceiling from last week that had a series of highs in the 0.7715-18 range.  That break has sent the price to another key area defined by a number of swing highs going back to August 2016.  Those highs come in at 0.77307 to 0.7755.  There have been 6 other peaks that stalled in this area.  In November, the price moved above it one day, and was back below it the next day. There is something about 0.77307 -55 area. Today's high stalled at 0.77471.  

Is it another swing high? Do we go lower from here?

Looking at the hourly chart, buyers showed interest above the 0.7715-18 level today.  What was resistance last week (1, 2, 3, 4, and 5 red circles), turned into support today (6, 7 and 8 red circles).  Buyers down there want to see the 0.7755 level broken eventually.  Traders long above the 0.7715-18 level can remain long as long as it takes, but if that area is rebroken to the downside, I would not be surprised to see a wander back lower.

Needless to say, this is a key area below. It is a key area above too. Can the change in the nuance of the price action from last week, lead to greater and better things for the longs? Get and stay above the 0.7755 level.