AUDUSD buyers are making a play today with a bounce away from support on the daily chart. The move to the upside has taken the pair above a swing area between 0.6433 and 0.64419 and also above the 100 hour MA at 0.6433. That area will now be a risk-defining level for buyers looking for more upside. By staying above, keeping the buyer “in play” with more work to do.
The “more work to do” is to get and stay above the 200 hour MA at 0.6463 and then the 100 MA bar on the 4-hour chart at 0.64793. Get above that and cut the 38.2% move down from the November high at 0.6492.
Essentially, the Chinese weekend news has helped move the pair higher in sentiment risk (see Adam's post is here).
So customers are playing. The trend is higher but there are still some ceiling resistance targets to be breached to give more control to buyers (and to tune it out from sellers).
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AUDUSD Technical Analysis
The AUDUSD pair is experiencing a bullish rebound, led by buyers, supported by a bounce on the daily chart.
Key technical levels:
Resistance-turn-support: 0.6433-0.64419 (swing area)
Fight back now
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200-hour MA: 0.6463 (target)
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MA 100-bar (4-hour chart): 0.64793 (target)
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38.2% Fibonacci retracement: 0.6492 (target)
Market Sensation:
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Consideration of risk: China's weekend news has boosted risk sentiment, driving the pair higher.
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Buyer Momentum: Customers are playing, with a higher turnover rate.
Trading effect:
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Buyers: Need to keep prices above the 100-hour MA (0.6433) and target the 200-hour MA (0.6463) and 100-bar MA (0.64793) to gain control.
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Vendors: We will try to protect the resistance levels and push prices back below the 100-hour MA to regain control.
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