The AUDUSD moved to the highest level since February 24, 2023 after the US CPI data earlier today. The high price extended to 0.68176. That took the price above the high price from Monday's trade at 0.6803, and also above the high price going back to April 14 at 0.68048.
However the break could not be maintained, and the price rotated back to the downside retracing all/most of the CPI gains.
The low corrective price reached 0.67535. At the low, the price tested its 100 hour moving average (blue line in the chart above). A modest bounce has taken the price to 0.6767. The swing high going back to April 20 reached 0.6771. A high price from the late Asian session today reached 0.67735. Getting above both those level, would give the dip buyers against the 100 hour moving some comfort/hope that a potential run back toward the 100 day moving average of 0.67899 is possible.
Conversely, stay below those levels, followed by a break back below the 100 hour moving average would increase the sellers bias (it is needed if the sellers are to take back some control).
Move below the 100 hour moving average and traders will next target the 200 day moving average of 0.67266. Moving back below that level would also increase the bearish bias technically. The 38.2% of the move up from the April 28 low is also near the 200 day MA level (at 0.6724).
For now, the failure to new highs is disappointing and has led to declines as a result, but there is work to do, to increase the bearish bias for the sellers. The buyers meanwhile, are burdened with getting back above the 100 day MA and the April/May double top. Those are difficult hurdles too.
