The AUD/USD pair rose and tested a swing high near 0.6823 in the Asian and European sessions. The price then declined as stocks fell in early US trading. However, as the AUD/USD pair approached its rising 100-hour moving average at 0.6778, buyers returned and halted the decline.
Why is this important?
Remember (and look at the chart below) that the session low on Wednesday after the FOMC rate decision stopped at the 100-hour moving average. On Thursday, the low broke below this moving average, but quickly returned to the upside. So there was buying at the moving average level.
As a result, the 100-hour moving average will act as a support level that must be broken to increase the bearish bias.
Conversely, on the upside, a move above the 0.6823 level and then the high from yesterday’s high at 0.68384, would increase the bullish bias.
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