AUDUSD on track for the biggest % move since 2011. Can the momentum keep up?

The AUDUSD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term has ripped to the upside helped by higher stocks and hopes for a transition from CHina's zero-Covid policy (or that is the excuse).

Looking at the chart above the lower scale shows the history of the daily % changes for the pair over time. Near the highs for the day, the gain was around 2.66%. That represented the highest % change going all the way back to 2011. In pips, the pair has a range of 195 pips which is well above the 116 average over the last trading days. The close yesterday came in at 0.6287. The low today was 0.6281. So virtually all those 195 pips are to the upside.

What next?

Drilling down to the hourly chart, the low after the jobs report stalled against the 50% midpoint of the range since October 13. That level comes in at 0.63455. The price then extended above its 100 hour moving average at 0.63765 and 200 hour moving average at 0.64047. Sellers turned to buyers and raced the price up to a high price of 0.6476 before rotating back to the downside.

A swing area between 0.6429 and 0.645. The price has dipped ot the low of that area. Can the buyers hold support? Find buyers here and the buyers are in firm control. A move below and traders could look back toward the 200 hour moving average at 0.64047.

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