The AUDUSD has extended above its 200 hour moving average at 0.67809 over the last hour so of trading. Early this week and last week, the price moved above that moving average line only to stall the rally shortly thereafter. On Wednesday of this week, the price moved and tested that moving average on 2 separate occasions. Each test found willing sellers against the level. That helped to lead to the new cycle low at 0.66809 reached yesterday.
Earlier today in the London morning session, the price was able to extend back above its falling 100 hour moving average currently at 0.6749. There was some resistance against the 200 hour moving average until the last push to the upside helped by rising stocks, risk on sentiment.
With the trend clearly to the downside, the breaks of the hourly moving averages become easier. The price has been consolidating up and down for the most part of the last 3 trading days.
Nevertheless the break of the 200 hour moving average is a step in the bullish direction from a technical perspective, and gives buyers a reason to try and play a corrective move to the upside.
On the topside the next target comes in at 0.6829 followed by 0.6849 and the high price from last Friday at 0.6874. Move above that level and traders would start to target the 38.2% retracement of the move down from the June 3 high which cuts across at 0.69106.
Needless to say move back below the 200 hour moving average would be a disappointment for the break and dip buyers.
US stocks are currently trading sharply higher with the Dow industrial average up 614 points or 2.0%. The S&P is up 66 points or 1.74% and the NASDAQ index is up 170 points or 1.51%.
US yields are also a touch lower today with the 10 year trading down -4.2 basis points at 2.923%.
