The AUDUSD buyers are making a play today with a bounce away from support on the daily chart. The move to the upside has taken the pair above a swing area between 0.6433 and 0.64419 and also above the 100 hour MA at 0.6433. That area will now be risk-defining level for buyers looking for more upside momentum. Staying above, keeps the buyer "in play" with more work to do.
The "more work to do" is to get and stay above the 200 hour MA at 0.6463 and then the 100 bar MA on the 4-hour chart at 0.64793. Get above that and the 38.2% of the move down from the November high cuts across at 0.6492.
Fundamentally, China's weekend news has helped to propel the pair higher on risk on sentiment (see
Adam;s post here).
So buyers are in play. Momentum is higher but there is some topside resistance targets still left to be broken to give buyers more control (and to wrestle it from the sellers).
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AUDUSD Technical Analysis
The AUDUSD pair is experiencing a bullish rebound, driven by buyers, with a bounce off support on the daily chart.
Key Technical Levels:
Resistance-turned-Support: 0.6433-0.64419 (swing area)
100-hour MA: 0.6433 (broken)
Resistance now
200-hour MA: 0.6463 (target)
100-bar MA (4-hour chart): 0.64793 (target)
38.2% Fibonacci Retracement: 0.6492 (target)
Market Sentiment:
Risk-on Sentiment: China's weekend news has fueled a risk-on sentiment, driving the pair higher.
Buyer Momentum: Buyers are in play, with momentum shifting higher.
Trade Implications:
Buyers: Need to maintain prices above the 100-hour MA (0.6433) and target the 200-hour MA (0.6463) and 100-bar MA (0.64793) to gain control.
Sellers: Will attempt to defend the resistance levels and push prices back below the 100-hour MA to regain control.
This article was written by Greg Michalowski at
www.forexlive.com.
