The Reserve Bank of Australia height rates by 25 basis points to 4.35% overnight. The move initially sent the AUDUSD higher, but right into it resistance near 0.6500. Comments from the statement tilted more toward the less hawkish/dovish side, and buyers quickly turned to sellers.
Technically, the 100-hour moving average (blue line in the chart below) was broken adding to the downward momentum. The 50% midpoint of the move up from last week’s low was also broken at 0.64186.
The low price in the early New York session bottomed at 0.6402 just above a swing level and natural support level at 0.6400. The rising 200-hour moving average (green line in the chart below) at 0.63978 is also in play. It would take a move below those levels to increase the bearish bias going forward.
On the top side watch the 50% midpoint at 0.64186. Getting above would give the dip buyer some confidence with a swing area between 0.64254 and 0.6435 another confidence booster for the buyers.
The 100-hour moving average is still moving to the upside at 0.6451 currently. Getting to and through that level – and the high price from last Thursday at 0.6455 – would really get the buyers more excited.
For now, however, it seems like the selling may have reached a support target that should give traders cause for pause. This often happens between the 100 and 200-hour moving averages when they are wide apart (see blue and green lines on the chart below). That is the dynamics in play on the hourly chart for the AUDUSD currently.
This article was written by Greg Michalowski at www.forexlive.com. Source