The AUDUSD has reversed back to the upside- trading to a new session high – after the run lower in the European session failed to extend below October lows. The low price today reached 0.6288. The low price for October was down at 0.62846 and then 0.62856.
That started the run higher. The last hour – with yields coming down – has seen a move to new highs in the AUDUSD.
Having said that, there has been a limit to the upside run. The following 100-hour moving average at 0.63299 has stalled the rally . The price is currently trading at 0.6326 – just off that level. There is also a swing area between 0.63269 and 0.63344 (see red numbered circles), and the falling 200-hour moving average at 0.63404. The 38.2% is also a target. Getting above all those levels is needed to increase the bullish bias going forward.
Sellers had their shot. They couldn’t push to new lows. Is it the buyers turn? Get above the 100 hour MA is needed (and stay above), to tilt the bias higher in the short term at least.
This article was written by Greg Michalowski at www.forexlive.com. Source