Technical Analysis

AUDUSD moves higher, then the AUSDUSD moves lower. What to watch next?

Move above 200 day MA fails.  Back to 100 hour MA

The AUDUSD price action today has seen a run higher into the NY session, and then a run lower in the NY session.

The upside was triggered by better China data.  That run took the price above the 200 day MA and traders tried to keep the pair above the level.  However, the pair was not able to extend to the topside channel trend line and the upside momentum stalled. 

When the price failed to stay above that 200 dat MA, buyers turned to sellers and the price started to take back the gains of the day.

Currently the price is back in the red for the day, but it is finding support buyers at the 100 hour MA (blue line at 0.71642).  

As we head into the new trading day, that MA line will be a barometer for the bulls and the bears. 

  • Stay above and the buyers are holding a better hand.  
  • Move below and the sellers will look toward the lower channel trend line and the 200 hour MA (green line) as targets. Also of significance will be the 100 day MA at 0.71386.

Looking at the daily chart, at the high otdya, the price not only got above the 200 day MA, but it also moved above a trend line at 0.7182.  Going forward, that trend line – as well as the 200 day MA at 0.71919 area – will be eyed to take back IF the pair is to move higher.  Be aware.

AUSDUSD on the daily chart got above trend line and the 200 day MA but it failed.

 In the new trading day, the Australian employment report will be released with the employment change expected to come in at 15K and the unemployment rate at 5.0%.  The participation rate is expected to remain at 65.6%

The report will be released at 0130 GMT. 


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