The AUDUSD is up testing the high from yesterday’s trading at 0.6717. The high price just reached 0.67149 after breaking back above its 200-day moving average of 0.66907.
Recall from yesterday, the price action continued its run to the upside after the surprise rate hike on Tuesday but failed on the break of the 200-day MA and a swing area between 0.6704 and 0.6709.
The price retraced back down toward the corrective low from Tuesday’s trade after the hike (at 0.6641), but stayed above the 50% midpoint of the May trading range (at 0.66376). That hold, gave buyers today the go-ahead to push to the upside.
The initial high in the European session stalled against the 200-day moving average but then pushed through the level after the higher-than-expected US initial jobless claims (weaker jobs/lower USD)
Moving above the 200-day moving average sets is as a risk-defining level once again. Stay above is more bullish.
On the top side, the 100-day moving average at 0.67425 would be the next key target on a break of the high from yesterday at 0.6717. The last time the price traded above its 100-day moving average was back on May 11.
Looking at the daily chart below, there have been 4 trading days where the price traded above its 100-day moving average over the last 67 trading days (3 months). All of those days failed intraday after breaking above the moving average (there have been no closes above the moving average since March 6).