The AUDUSD is following the US dollar higher after the higher inflation data in core PCE, personal income, employment cost data at of the US this morning. The price moved below its 100 hour moving average at 0.69637 and is down testing its 200 hour moving average at 0.69347. The low price just reached 0.6936 and has bounced modestly to 0.6942.
For traders, trading between the 2 moving averages gives a modest bearish bias with more work to do. A move below the 200 hour moving average would be the 1st break since July 15. Traders will target the 0.6912 – 0.69196 swing area from Tuesday and Wednesday lows. Move below that level and the 38.2% retracement of the move up from the July low cuts across at 0.68974.
It would take a move back above the 100 hour moving average at 0.69637 to put the bias back in the buyers control.
PS. At the high today, the move to new month highs took the price up to a swing area going back to June 13 and June 16. The price break above that level on June 16 but then moved back below the very next day and stayed below. Traders leaned against that area ahead of the June extreme.
