100 day MA getting closer. Be aware.
The AUDUSD has been a stronger currency today. In fact, it is the strongest of the major currencies rising against ALL the major currencies (see chart below).
Against the USD, the pair is up by 1.1%
What do the technicals show.
The pair was hit down yesterday after the Fed and RBNZ interest rate decisions. Stocks were on the defensive, the RBNZ was more dovish (room for a cut). However, note the support. The pair moved down and bottomed against the 100 hour MA (blue line in the chart below). The 50% retracement of the move up from Tuesday's low to Wednesday's high was also at the level. Support held like a charm. There was a retest in the Asia-Pacific session, but buyers came in early against the level and better than expected CPI, sealed a more supportive/bullish bias.
The push higher has continued in the North American session. The price in the last hour reached a new peak at the 0.71274 level. It is currently trading at 0.7105.
That is the bullish news. The words of caution come from overhead resistance which is being approached. That resistance comes against the 61.8% retracement of the move down from the December 31 high to the January 14 low. That level comes in at 0.71358. In addition the 100 day moving average is currently at 0.71423.
The high price at 0.7127, so far has come up short against those levels and we are trading back down. However, should the upside momentum reignite be aware that the key overhead resistance looms ahead. I would expect sellers against the area on the first test. Be aware. Be prepared
Looking at the 5 minute intraday chart, the pair has found support at the 100 bar MA. That MA is being approached on the correction lower. Trend line and 38.2% and swing highs in the area as well.
