The AUDUSD is back at it again. Trading above and below the 100 and 200 day MA. After breaking to the upside last week (above both MA levels -see blue and green lines in the chart above), the bulls were happy. Then the correction lower started.
Last night, the price dipped back below key 100 day MA (blue line at the 1.0194) and trend line support (at 1.0200 – low reached 1.0176) but that action failed and shorts covered.
In the last few hours, the price has moved back above the 200 day MA at the 1.0279 level. The price also moved above the 200 hour MA (green line in the chart below) at the 1.0296 (high has reached 1.0307). Stay above each and the bulls remain in control again. The one caveat is that the pair does have a good amount of resistance against 100 hour MA, 50% retracement and high from yesterday’s trade at the 1.0309 to 1.0319 area. This may attract some profit taking sellers with stops above.
The move higher is built on a foundation of problems will be solved and Australia will be spared. That verdict is still out. Howevever, the failure on break below key support at the 100 day MA and trend line) was a key clue the sellers were not so strong. Now the move above the 200 day MA in stronger control. Stay above and all is well with the world. All is well with the AUDUSD.