Breaks back above the 100 day MA.
The AUDUSD fell on the higher-than-expected CPI and traded to the lowest level since October 13 in the process. The pair also moved further away from the 50% midpoint of the move up from the end of September low to the end of October high. That level comes in at 0.73616. However, sellers could not keep the pressure on and the pair started to "take back" broken levels.
In the process back higher off the post CPI lows, the pair has move back above:
- The 50% midpoint at 0.73616 (along with swing lows from November 5 and November 9) all.
- The 100 day moving average at 0.73728 (overlayed blue line),
The pair approached its 100 hour moving average at 0.73943.
There has been some sellers against the 100 hour moving average on the first test. That is as expected, and in doing so, sets up a battle between the 100 hour moving average above (at 0.73943), and the 100 day MA below (at 0.73728)
A move above the 100 hour moving average would increase the bullish bias. Stay below and traders will look back toward its 100 day moving average at 0.73728. Traders will help define the next momentum move hopefully on a break of either of the technical extremes.
