The AUDUSD closed right near its 100-day moving average on Friday after extending above the level moving to a high near 0.6750 before rotating back to close at 0.6743. That was just above the 100-day moving average currently at 0.67376 (see blue line in the chart above). The last time the price closed above its 100-day moving average you have to go back to March 3. There had been 4 days since that day when the price moved above the 100-day moving average but there had been no closes above the hidden until Friday (see daily chart above).
In trading today, the Asian session saw up-and-down price action above and below the key moving average level (today at 0.67376), before extending higher into the European morning session. The high price reached 0.67735 before rotating lower. The low price in the US session as the dollar moved higher reached 0.67405, just 3 pips short of the 100-day moving average. The price is currently trading at 0.6750 (which is near the high from Friday).
What now?
The 100-day moving average will be a barometer in the short term for both buyers and sellers. Dipping down to within 3 pips and holding, shows a willingness of buyers to step in against the moving average level. They are trying to keep in control.
Having said that, getting above the 0.6750 high from Friday would be needed to give those dip buyers some additional confidence (and perhaps worry some of the shorts as well) a move above would have traders then targeting the high from earlier today.
The trading decision technically in the short term is to stay above the 100-day moving average.
What would happen if the price or to break back below the 100-day moving average?
Traders would likely look toward the 0.6717 level. That was a high price from last Wednesday and Thursday a move below that level within have traders targeting the rising 100-hour moving average currently at 0.67013 (lower and rising blue line. In the chart below).
