AUDUSD is ticking to the upside helped by risk-on flows and technical breaks
The AUDUSD moved lower yesterday after the post-CPI run to new highs going back to June 5 stalled and reversed into the close. The selling pressure carried into today’s session as the pair broke below both the 100-hour moving average at 0.70598 and the 100-day moving average at 0.7055. Sellers then pushed down toward the 200-hour moving average at 0.7045. Although the price briefly traded below that level by a pip, the break could not be sustained, and the pair quickly rebounded.
More recently, the broader risk-on environment has provided some support for the Australian dollar. US equities are moving higher, with the Nasdaq up 1.03%, the Nasdaq 100 up 1.35%, and the S&P index trading at a new record high. At the same time, Treasury yields are moving sharply lower, with the 2-year yield down 6.7 basis points and the 10-year yield down 7.1 basis points. That combination has helped fuel renewed buying in the AUDUSD.
Technically, the rebound has taken the price back above the key 100-day moving average at 0.7055 and the 100-hour moving average at 0.70598. That shifts the short-term technical picture back in the buyers' favor. The 100-day moving average at 0.7055 now becomes a key close-risk level for buyers. Staying above it keeps the buyers in play; a move back below would weaken the rebound and bring the 200-hour moving average at 0.7045 back into focus.
Buyers are making a play. Can they keep the momentum going?
On the topside, the next target comes at the 50% retracement of the move down from the May high at 0.70707. A break above that level would strengthen the bullish bias and open the door toward the swing highs from this week, culminating with yesterday’s high at 0.7091.
For now, the failed break below the 200-hour moving average and the subsequent recovery above the 100-day and 100-hour moving averages have given buyers the advantage. The challenge is now to stay above those reclaimed technical levels and extend the move through 0.70707.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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