AUDUSD moves back above its 200 hour moving average. What now for the pair? | Forexlive

The USD has moved lower, yields are lower and stock prices are higher after the tamer US CPI data. That has “risk on” sentiment pushing the AUDUSD back to the upside. The moves have shifted the bias back to the upside technically at least in the short and medium-term. Having said that, the pair remains confined within an up-and-down trading range.

Looking at the hourly chart, the price moved back above its 200 hour moving average at 0.66940. That level is now the risk level for buyers looking for more upside. The low after the release took the price down to 0.6699 – just above that 200 hour moving average level. If the buyers are to remain more in control – in the short term – staying above the 200 hour moving average would keep that bias in their favor.

The spike to the upside today reached a high of 0.6723. That took the price within a swing area between 0.6720 and 0.67296. The 61.8% retracement of the April trading range is also within that swing area at 0.67266. Sellers leaned against the resistance area (see red numbered circles).

It would now take a move above that level to increase the bullish bias in the short/medium term. Above that sits the 200 day moving average at 0.67445.

Overall buyers are taking charge with the move back above the 200 hour moving average. That level today as a key barometer for both buyers and sellers. Stay above is more bullish. Move below and they could be further downside probing on the disappointment.