Go back to yesterday’s close at 0.7305
The AUDUSD recovers earlier declines which also saw the pair move to a new weekly low. Today’s low price hit 0.72539. This knocked out the early Monday trade low at 0.72596.
However, the downward momentum has slowed. The price started moving up and down below its 200 hour moving average at 0.72836. The last hour of trading took the price back above that 200 hour moving average and traders are looking to the 100 hour moving average at 0.72978 (blue line in the chart above).
US equities rebounded, which helped risk flows (and commodity currencies like AUDUSD). The NASDAQ is now up nearly 0.91%. The S&P index is up 0.46%. Both are nearing their highs for the day.
Over the past 11 days, the AUDUSD has been stuck in a range between 0.7221 and 0.7339. The 118 pip trading range is not much for a period spanning 2 weeks of trading. At some point, traders will push one where the other. The 100 and 200 hour moving averages between these two extremes should serve as a barometer for bulls and bears. The above trade is more optimistic. Stay and the trade below is more bearish