AUDUSD retraces back to its 200 hour moving average | Forexlive

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The AUDUSD raced higher on the back of the RBA’s price hike. That the price up to the 61.8% retracement of the move down from the April 14 high at 0.6716. The price retrace back down toward the 50% and a swing area between 0.6676 and 0.6680 early in the US session.

The selling has intensified over the last hour or so as risk-off flows and concerns about global growth (banking concerns) weigh on stocks. Crude oil is down sharply (-4.48%). Gold is higher however with a rise of $29 or 1.47% as US interest rates tumble with the two-year down -18 basis points.

Honestly the flows are a bit confusing, but technically for the AUDUSD falling away from the 50% retracement and the swing area 0.6676 (low – see yellow area and red numbered circles in the chart above), turned buyers to sellers.

What next?

The fall has seen some support ahead of the 200 hour moving average 0.6653. The low price reached 0.66575. The current price is trading at 0.6663. Watch that moving average level down to 0.66492 (low of a swing area – green numbered circles) as support. Move below and we could see a full retracement of the move higher off of the surprise interest rate hike down to the 100 hour MA at 0.66268. However, if the market can hold above the 200 hour moving average, traders will be re- focused on the 0.6676 – 0.6680 area above as a target and for further technical clues.