Held support at 200 hour MA and underside of broken trend line
The AUDUSD has continued it’s run higher after falling to test support at the 200 hour MA and underside of a broken trend line. That w good for the bulls/buyers.
The move to the upside has the next target area at the 0.6774 to 0.6782 level. That is home to some swing levels going back to September 19 and the 50% retracement of the move down from the September 12 high.
For the week, the high on Tuesday after the RBA cut rates by 25 basis points, reached just above its 200 hour moving average, but stalled right at a topside trend line at the 0.6774 area.
The pair reversed and quickly moved down to the lowest low in 10 years at 0.6671. After a correction higher on Wednesday, the pair moved to a new low for the week (and 10 year low) at 0.66701. Needless to say, making a new low by a pip is not a good look. The sellers turned buyers and the price has corrected 1st above the 100 hour moving average (blue line) and now above the 200 hour moving average (green line)/trend line.
Buyers at the failed lows, buyers above the 100 hour MA and buyers above the trend line/200 hour MA are tilting the bias more to the upside after each successive step higher. Risk is now the 200 hour MA for those looking for more “risk on” flows.
Next week US/China will be the focus. The AUDUSD is typically reactive to the good or bad news. So if trading this currency pair, be sure to know your risk and know your targets too so you can manage your risk dynamically.