The AUDUSD has seen up and down price action today, but is currently trading to a new high. In the process, the pair is testing its 200 hour moving average at 0.6989 (green line in the chart above).
Recall from last week, the rally higher on Thursday's trade stalled right near the 200 hour moving average and 50% retracement. Sellers leaned and pushed the price back lower on Friday.
Yesterday, the price moved back above its 100 hour moving average (blue line in the chart above), but fell back below that moving average into the close. Today the up and down price action has seen the pair trading above and below the 100 hour moving average on a number of occasions.
Clearly the buyers and sellers are battling it out and not sure of the next directional move. However, if the price can extend above the 200 hour moving average with momentum, it would tilt the technical bias more in favor of the buyers in the short-term (with work to do).
The next upside targets would be to
- Get to and through the 38.2% retracement of the June trading range. That level comes in at 0.70151.
- Above that a swing area between 0.7029 and 0.7034 would be targeted.
- Get above that and the 50% retracement at 0.7066 will be the next major target that would give the buyers more comfort and more control.
Absent a break with momentum above the 200 hour moving average, and the sellers are still in the driver's seat. The rotation back below 0.69489 should increase the bearish momentum with the low for the day at 0.6934 is the next downside target to get to and through..
