The AUDUSD moved increased early within the week, however the Fed’s less-dovish tone turned the tide — sending the AUD decrease and the USD broadly increased. Shares slipped and yields rose in response to the extra hawkish message from Chair Powell. That helped the push decrease as properly.
Nonetheless, the draw back transfer has discovered help close to the 200-hour and 100-day shifting averages, each converging round 0.65366. That confluence offers merchants a transparent risk-defining degree, and patrons have stepped in to defend it. With danger contained beneath, “patrons are in play.”
The following upside targets sit first at the day’s excessive, and extra importantly, the 100-hour MA at 0.65684 — a degree damaged to the draw back yesterday and now performing as a key barrier. A transfer above it will shift momentum again in favor of the bulls.
If patrons can’t maintain the road and worth slips beneath the converged MAs, nevertheless, the bullish case fades and draw back strain returns.
Backside line: The AUDUSD sits at a key crossroads — patrons have an outlined shot from help, however they’ve work to do to wrestle full management. If they can’t do it, and the worth falls beneath the twin MAs beneath, that bias will shift totally in favor of the sellers.
