- The AUDUSD is back below the 200 day MA at the 1.0374 level today (green line in the chart above).
- The last 5 days has seen the price trade above and below this MA level as the market players decide bullish or bearish for the pair.
- Stay and close below this level and the bias is bearish. Move above and the bias moves back to bullish.
On the hourly chart,
- The 100 hour MA is at 1.0376 (blue line in the chart below). This increases the importance of the 200 day MA area at 1.0374
- The next target to the downside comes in at the 50% and 200 hour MA (green line in the chart below) at the 1.0338 level.
- If the price moves below this level, it opens the door to 1.0311 which is the 61.8% of the move up from the April low
The market will start gearing up for the CPI which will be released on April 23rd (at 9:30 PM ET). The RBA has said that if CPI inflation remains contained, that it opens the door for further easing. The expectation is for 0.5% increase for the 1Q and YoY to decline to 2.2% from 3.1%. The prospects of lower rates should keep the bearish bias for the pair (all things equal).
