AUDUSD bounces off its 200 hour moving average

Technical Analysis

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Price is higher on the week

The AUDUSD closed last Friday at 0.7250. The price is currently trading at 0.72618 for a gain currently up about 12 pips on the week. 

The move to this level, has seen the AUDUSD  move higher on Tuesday to the high for the week at a 0.73104. 

The pair joined  the dollar bull run on Tuesday and Wednesday (AUDUSD moved lower), with the pair moving below the floor from September at 0.72199 to 0.7223 on it’s way to the low at 0.71684 at the start of trading on Thursday (lower AUDUSD is a higher USD). 

Since then the price has seen a rebound back toward moving average levels. The high price on Thursday did extend above the 200 hour moving average but only briefly. 

In trading today looking at the hourly chart, the Asian session high stalled against its 100 hour moving average, corrected lower, and has run higher, extending back above the 100 and 200 hour moving averages in the process. 

The last corrective move off the high near 0.7273, moved lower and tested the 200 hour moving average at 0.72481.  Key test. The dip found buyers against that level on the test. That keeps the buyers/bulls more in control.  

What next?

Stay above that 200 hour moving average going forward would keep the buyers more in control. Conversely, move below, and then break back below the 100 hour moving average at 0.72347 (blue line), would shift the bias back to the downside likely lead to another retest of the near the 0.7220 level.

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