RBA kept rates unchanged
The AUDUSD is getting a bit of a lift today on the back of the RBA decision in the Asian Pacific session and risk fears from the coronavirus.
The move to the upside also comes after the pair reached a new low for the year at 0.66783, but failed to reach the October 1, 2019 low price of 0.66714 (see the daily chart above). Is that fundamental and technical combination enough to get the pair off its back and lead to more probing to the upside? The buyers are certainly trying.
What would spoil the correction party?
Drilling to the hourly chart below, the price moved to the upside as seen the pair move above its 100 hour moving average currently at 0.67122. Admittedly the run higher has traded above and below that moving average line through most of the London morning session. However the last 4 hourly bars has seen the pair stay above that level. The buyers are trying to take more control and moved the price away from that moving average. The last time the price has traded above the hundred hour moving average is back on January 23 and before than January 17. So there has not been a lot of activity above that moving average. Bullish.
It would take a move back below the 100 hour moving average at the 0.67122 level to hurt the corrective momentum.
Having said that there are hurdles to the topside that need to be broken.
Looking at the hourly chart, the 0.6734 tp 0.6740 area is home to swing levels going back to January 28, 29 and 30. So far, sellers have been using that as a resistance target. A move above is needed to solicit more buying.
If broken, traders will be looking toward the 38.2% retracement of the trend move down from the January 23 high at 0.67547. Also at that level currently is the falling 200 hour moving average (green line in the chart below). That area would be a tougher nut to crack on more upside momentum.
So buyers are making a bigger play over the last 4 hours above the 100 hour moving average and away from that level, but there is work to be done. Stay above the 100 hour moving average gives those buyers some hope.
