The AUDUSD moved higher last week on the back of higher commodity prices and some isolation from the developments in Ukraine. The price rise last week, took the price above its 200 day MA at 0.7318 on Thursday, and pushed higher on Friday and Monday as well.
The break above the 200 day MA was the first since July 6th, but only lasted 2 days as momentum could not be sustained and today, the price moved back below the level.
The break back below the 200 day MA (currently at 0.73176) has the lower 100 day MA as the next downside target. That comes in at 0.72308. The low today reached 0.72443. The current price is at 0.7272 – comfortably between those two MA levels.
Off the chart, traders will look for the next shove once again.
It is a disappointment that the break finally above the higher 200 day moving average could not sustain momentum. Having said that however, there was a fair amount of resistance against the 100 day moving average on the move to the upside. Often times, that will help dip buyers at least on a test. It make sense to buy against the 100 day moving average with a stop below the level.
So although there is disappointment on the break above the 200 day moving average, there is still hope that support hold and a push back above the level can lead to further upside momentum.
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