Stocks open and move higher led by Nasdaq
The AUDUSD is seeing some risk on buying as stocks move higher at the open led by the Nasdaq (up about 130 points).
The AUDUSD fell sharply yesterday on the back of the opposite dynamics. Stocks ran lower. Bitcoin his getting crushed and so was risk currencies.
The move to the downside saw the price take out the 100 hour moving average near 0.7761, and ultimately through the 100 day moving average at 0.77248 (and the swing low from Monday at 0.77298).
Today, the sellers had their shot in the Asian session to move lower and away from the 100 day moving average, but once the price started to trade more above the 0.77298 swing low level from Monday, the sellers turned the buyers and the price rotated back toward the 100 hour moving average. Sellers initially leaned against that level pushing the price back toward the 0.77298 level. However buyers leaned and the price has been marching higher since then with the last 4-5 hours moving higher.
The price has just moved back above its 100 hour moving average and is up testing its 200 hour moving average at 0.77764 as I type. Get above that moving average level and it should open up the door for further upside. However there are additional hurdles between the swing area at 0.77837 and 0.77916. The 50% retracement of the range since May 10 high comes in at 0.7789 (in that swing area). Get above those targets and the buyers are feeling more powerful. The sellers are not.
PS as stock trading gets underway, The AUD is the strongest of the majors while the USD and widened its lead as the weakest of the majors. Below is a snapshot of the rankings of the major currencies as stock trading got underway
