AUDUSD technicals: The 100 hour MA target stalls the rally on the first look. What now? | investingLive

The AUDUSD experienced a volatile session yesterday, marked by a sharp down-then-up reversal as traders reacted to shifting macro headlines and shifting sentiment. Early in the Asian and European sessions, the pair came under strong selling pressure amid renewed trade war concerns between the U.S. and China, with risk appetite fading and commodity-linked currencies broadly on the defensive. The downward momentum drove the pair lower, but the tone shifted dramatically once the North American session began.

As the U.S. dollar weakened following dovish-like remarks from Fed Chair Powell, the AUDUSD found a footing and began to recover. Buyers stepped in near key intraday support, helping the pair rebound and ultimately push above the 0.6481 swing level, a zone previously flagged as an important technical pivot. The subsequent retest of that level confirmed support, as buyers defended the breakout and built a base for today’s continued move higher.

The rally extended to yesterday’s high and into the path of the falling 100-hour moving average, currently near 0.6516. That technical barrier attracted fresh selling interest, leading to a modest pullback. The price action has since consolidated between resistance at the 100-hour MA and support from a nearby swing area between 0.6500 and 0.65046.

At this juncture, the market has effectively defined its battle lines — with short-term direction hinging on which side breaks first. A sustained move above the 100-hour MA would invite further upside momentum, with traders eyeing deeper retracement targets from the recent decline. Conversely, a break below 0.6500 would signal buyer fatigue and could tilt momentum back toward the downside. For now, the pair sits in technical limbo, with traders awaiting the next catalyst to shove the AUDUSD out of its current standoff.