... be careful for a potential failure
The AUDUSD has moved back above its 100 hour MA at 0.69937. Yesterday, the pair cracked below the MA and saw decent selling. Today, we moved above but are not seeing a whole lot of buying above the MA level. Although above, be careful for a potential failure.
The pair is higher today despite the cut of 25 basis points by the RBA. The cut sent the pair down initially, but quickly snapped back on the tweak in the outlook, saying:
The Board will continue to monitor developments in the labour market closely and adjust monetary policy if needed to support sustainable growth in the economy and the achievement of the inflation target over time.
The key words...."if needed".
Traders have to respect the bullish break of the 100 hour MA. Buyer have more control being above the 200 hour MA and the 100 hour MA. However, if the momentum fades and the price moves back below the MA, may see more of a rotation back to the downside.
