Technical Analysis

AUDUSD tests the key 100 day MA target

AUDUSD tests the key 100 day MA

The AUDUSD is trading to a new high for the day and in the process is ticking closer to the falling 100 day MA at 0.67025.

The last time the AUDUSD traded above its 100 day MA was back on August 15 in the midst of the summer stock rally that saw the S&P index move up to 4325 and test the 200 day in the process. The S&P is currently at 3970 with the 200 day MA at 4080.94. Both are lower than the August stock levels, and so is the AUDUSD vs. its 100 day MA. Nevertheless, a move above the 100 day MA for the AUDUSD would be a tilt in the positive bias direction on the daily chart.

The price just reached 0.6703, just above the 100 day MA. Key level for buyers and sellers.

There may be some sellers against the level on the first test as risk can be defined and limited. We are also heading into the 4 PM London fixing which may be influencing the price action. Nevertheless, if broken, look for stops with the next target above at the 38.2% of the 2022 range at 0.67025. If the price is to go higher, getting and staying above the 100 day MA AND the 38.2% is required.

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