AUDUSD above the 100 hour MA but below the 200 day MA
The traders in AUDUSD tried to go lower off the back of the RBA meeting minutes in the Asian session that led traders to think a cut was in the cards. However, despite the fall, the price stalled at the 100 day MA (see overlay at 0.7139 level in the chart below).
The pair waffled above that 100 day MA, but below the higher 100 hour MA (currently at 0.7158) into the London morning session. That stayed until a run higher – helped by reports from an Australia’s Herald Sun article that ‘Despite headlines, a rate cut is not imminent’. The pair reversed higher. On the move, the 100 hour MA was broken. The price extended to 0.7178, a new high for the day. The down and back up lap was complete.
Going into the new day, the pair sits above the 100 hour MA at 0.71586. Stay above is more bullish. However, it also is below the 200 day MA above at the 0.7193 level. That MA is also close to the high from Friday (the 200 day MA stalled the rally on that day).
So on the wide the 100 day MA below at 0.7139, the 100 hour MA at 0.71586 (and moving higher) are now support levels. Stay above is more bullish.
On the upside, watch the high from yesterday at 0.71816 as an interim target to get and stay above, followed by the the 200 day MA at 0.71932. That MA was tested last Friday, and remains a key target on more buying. A break above would increase the bullish bias for traders.