AUD/USD jumps higher but fails to move above the 200-hour MA
The lows overnight and this morning stalled around the 76.4 retracement level just under 0.7250 and then the pair got a spike as the aussie jumped following the news of Scott Morrison replacing Malcolm Turnbull for the prime minister's seat.
However, the jump saw the pair move to a high of 0.7290 on the day. That falls just shy of testing the 200-hour MA (blue line) and the 50.0 retracement level @ 0.7292. As price continues to stay below the two key hourly moving averages, near-term bias remains bearish.
And to be fair, despite the relief spike in Asian trading, the same underlying fundamentals driving the aussie lower - see this post from yesterday - are still very much at play. The only other factor that will work in favour for the aussie is the market's sentiment towards the dollar.
Overnight trading saw the dollar become the hot pick but we're yet to see any follow through in trading today just yet. Either way, unless buyers break above the 200-hour MA, the near-term bias remains to the downside for AUD/USD.
Support
- 0.7245-50 (76.4 retracement level, swing lows)
- 0.7225 (swing lows)
- 0.7200 (year's lows, barrier options)
Resistance
- 0.7291-92 (200-hour MA, 50.0 retracement level)
- 0.7322 (100-hour MA)
- 0.7339 (23.6 retracement level)
- 0.7370-80 (swing highs)
