Moved above 100 hour MA for the first time since July 22
The price has been trending lower since peaking at 0.70813 back on July 19. The low reached 0.66767 in yesterday’s trading. The low price yesterday fell below a lower trend line but quickly rebounded. That helped to give the buyers a little more confidence in buying. The dollar selling on the back of sharply lower rates yesterday also helped the pair move higher.
Today, the AUDUSD moved above its 100 hour moving average for the first time since July 22 in the Asian session today. Bullish.
The move above the 100 hour moving average (and a top side trendline) gave additional technical support and bullish encouragement to traders. The run higher took the price up to the 200 hour moving average at 0.68164 currently where sellers initially came in. After a modest move to 0.6793, the pair is moving back higher and looking to test that 200 hour moving average for the second time today. Traders will be eying the level for the next clues. Stay below and we can expect rotation back down (perhaps to retest the 100 hour moving average). Moving above and the bulls take back more control.
Targets on a break higher.A move above will target the 0.6831 level. That is the 38.2% retracement of the move down from the July 19 high above that and 0.6861 – 66, will be targeted (swing area from July 31 and August 1).
As mentioned above, if the sellers keep a lid on the pair at the 0.68164 level, we should see buyers turning to sellers with a potential retest of the 100 hour moving average at the 0.6769 level.
PS The AUD is the strongest of the major currencies today with the AUDUSD up 0.86% and the GBPAUD also up 0.86% leading the way.