A slow decline allows for the 100 hour MA to catch up

The AUDUSD moved above a swing area at 0.7288 to 0.7300 in trading yesterday and did not stop until reaching 0.73392. All the gains were then retraced as the pair completed a lap up and then down. The floor at 0.7266 stalled the fall.

The trading today has seen lots of up and downs price action on the hourly chart. However the highs for the day stalled within that 0.7288 to 0.7300 area. More recently with stocks moving lower (especially the Nasdaq index), the pair has push to test its 100 hour moving average currently at 0.72514. The price has not traded below that level since November 4. A move below the moving average line would be more negative with the swing low from Friday at 0.72383 another hurdle to get below in order to increase the bearish bias technically.

On the topside watch the 0.7266 level and then the swing area for resistance. It would take moves above each to give the buyers more confidence as the market consolidates the gains from last week’s trading.

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