Pair is between the 100 and 200 hour MAs
The AUDUSD tumbled lower late yesterday after the Trump tweet. That move took the price below its 38.2% retracement of the move up from the September 25 low at 0.71308 and the 200 hour moving average (green line). The 50% retracement of the same move higher at 0.71068 was also breached as the pair moved to a low of 0.70924.
As the next president tweet storm came out speaking to a piecemeal stimulus, the price started to rebound higher.
The moved to the upside took the price back above the 200 hour moving average (green line) and the 38.2% retracement. Both of those levels come in at 0.71308 currently.
The high price extended above a swing area (see red numbered circles between 0.71436 0.71491, but only briefly. The price currently trades near 0.7140.
Overall the move back above the 200 hour moving average and between it and the higher 100 hour moving average at 0.7160 puts the pair back in neutral territory. Traders will be looking for the next shove.
The aforementioned swing area can now be eyed as an interim barometer for the buyers and sellers. If the pair can stay below it, sellers will look toward the 200 hour moving average/38.2% retracement for additional bearish clues. If the price moved above, the 0.7160 level from the 100 hour moving average becomes a focus. NOTE: the 100 hour moving average did stall rallies yesterday before the run lower.
