AUDUSD falls back to toward the 100 hour MA | Forexlive

The USD is seeing some retracement higher in early NY session ahead US stock open. The Dow Industrial Average is now trading down 60 points while the S&P index is down around -10 points. Yields are moving higher as well with the two year now up 4.6 basis points and the 10 year up 4.3 basis points.

The AUDUSD started the the day moving to the downside after Australian CPI data was weaker than expectations. GDP was also weaker than expectations. However, after breaking below the low from Monday’s trade, but only by a few pips, the price started to rotate back to the upside. Better China date also helped to push the pair back to the upside.

Technically, the price moved back above its 100 hour moving average (currently at 0.67515), and tested the 38.2% retracement of the move down from last week’s high. That level came in at 0.67806. The high price reached 0.6783 before rotating back to the downside.

The price is back down testing the 100 hour moving average. Key level for both buyers and sellers.

On a move below the 100 hour MA, traders will be eyeing the 100 day moving average at 0.6734. That is another key barometer if the sellers are to take back more control.

Admittedly over the last few days, the price has been trading above and below that moving average level as traders are unsure of the directional bias. Today’s price action did the same.

However the break above it and then the 100 hour moving average was something different. Can the 100 hour moving average now hold support? Or will the sellers take back what it gave up earlier today (on the break higher)?