Copper is up, yes, but there was a break technically which is helping
A big mover today is the AUDUSD. The move higher started yesterday with the USDs weakness. Today, the dollar is not so weak but it continues it's weakness against the AUD.
Why?
Looking industrial metals like copper, it is up modestly in trading today. Copper has been beaten down. So any wiggle higher is a positive thing. Looking at the hourly chart of the lead copper futures contract, the 100 hour MA has caught up with the price and there has been some peaks above the and MA line today.
Looking at the AUDUSD daily chart itself, the move higher can also be attributed to a move above the 100 day MA (blue line in the chart above). The AUDUSD has not had a close above the 100 day moving average since June 18, 2015. In October, there was a quick peek above the moving average, but it was quickly rejected. The push above in trading today is definitely contributing to the more bullish tone and helping to lead to other buying interest in the currency.
The next upside target for the pair comes against the October 26th swing high. The high from October 23rd will also be eyed. Those levels come in at 0.7269 and 0.7296 (see hourly chart below). The pair is seeing some resistance at the 61.8% area (see chart below). The line in the sand risk for those looking for increased upside is that 100 day MA though. That is key now and going forward.
