The AUDUSD shifted from a bearish tone earlier in the day to a more bullish bias in the U.S. session, as buyers pushed the pair above both the 100- and 200-hour moving averages near 0.6495–0.6497. That move turned the near-term technical outlook to the upside. The pair reached a session high of 0.6517 and has since been consolidating just below that level, with intraday support forming around 0.6508.
Heading into the new trading day, buyers will need to extend momentum by breaking above the 0.65239 ceiling, a level that has capped rallies since October 13. A move beyond that would shift focus toward the 100-day moving average at 0.65338—a critical barrier last broken on October 10 and retested unsuccessfully three days later before the pair dropped to its October low of 0.64398.
While price action since then has been choppy, today’s push above the hourly moving averages is a constructive sign for the bulls. Still, a sustained break above the 100-day moving average remains the key hurdle for confirming a broader bullish shift. Failure to do that, and a move back below the 100 and 200 hour moving averages would surely disappoint the buyers on the break back higher today.
This article was written by Greg Michalowski at investinglive.com.