The rally stalled in NY session
The AUDUSD moved higher after an early dip at the start of the day.
The move higher is despite reports of a hike in tariffs by the US on China. The good news is the tariffs are 10% vs 25% originally thought. Also, the tariffs have also NOT been officially announced (despite all the hints including word from White Houses Kudlow).
The pair moved higher off the Asian low, and in the NY session tested a topside trend line – inching above by a few pips. That trend line has slowed the rally. The pair over the last 7 hours has only had a trading range of about 18 pips. The trend line comes in at 0.71906 currently.
The highs today are also below the highs from Friday and Thursday at 0.7215 and 0.72287 respectively. If the rally should bust that trend line, those highs will be targeted.
On the downside, the pair is above the rising 100 hour MA at 0.71628. At the day lows, that MA as broken. However, the price did move back above that MA and push higher.
The price action is slow, but at some point the price will break and run. The topside trend line will be a barometer for bulls and bears. Sellers leaning would likely cover on a break above. If the line holds, the 100 hour MA will become the target and next key level to test the market.
Bet against the tariffs and impact, buy the pair. Not so confident or want to see more upside, sell the pair.