Correcting lower after yesterday's post cut squeeze
Yesterday the RBA cut rates. The AUDUSD fell initially and then squeezed higher. The price traded at the highest level since July 15 - getting close to trend line resistance on the daily chart in the process.
Today, the price has corrected lower with the pair stepping lower.
Looking at the 5-minute chart below, the pairs move to the downside has been choppy. There was a spike in the Asia-Pacific session, that's all the price test spike highs from yesterday around the 0.7614 level. For most the trading session today, the price has traded below the 200 bar moving average on the 5-minute chart (green line). It has not been perfect (there was a brief move above early in the NA session) but that move was quickly rejected.
With the price moving to new lows traders will be looking for continued momentum. The midpoint of the move up from the low yesterday comes in at 0.7561. The 100 hour MA is also in that vicinity (at 0.7563). That area will be a key level for both bulls and bears. Stay above and the bulls gain confidence. Move below and the bears wrestle back more control and traders may start a delayed RBA rate cut sell off.
