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AUDUSD rebounds after slipping below key moving averages

The bounce is supported by risk-on trading in US equities and falling Treasury yields, which have helped lift the Australian dollar back above the 100-day and 100-hour moving averages.

Reported · Written up by our desk · Major Pairs

Forexlive reports that AUDUSD reversed higher after selling pushed the pair below both the 100-hour moving average at 0.70598 and the 100-day moving average at 0.7055. Sellers then drove it toward the 200-hour moving average at 0.7045, but the breakdown could not be sustained, and the pair quickly rebounded.

The outlet links the rebound to a broader risk-on tone, noting US stocks moving higher, with the Nasdaq up 1.03%, the Nasdaq 100 up 1.35%, and the S&P index trading at a new record high. At the same time, Treasury yields were falling, with the 2-year yield down 6.7 basis points and the 10-year yield down 7.1 basis points.

Technically, Forexlive says the recovery has taken AUDUSD back above the 100-hour and 100-day moving averages, shifting the short-term picture toward buyers. It adds that the 100-day moving average around 0.7055 is now the key level to hold on closes, while a break above the 50% retracement at 0.70707 would strengthen the bullish bias.

On the upside, the next cited target is a move toward 0.7091, referenced as a swing high from this week. For now, the failed break below the 200-hour moving average followed by the reclaim of the 100-day and 100-hour levels has given buyers the advantage, according to Forexlive.

Latest closeNasdaq Comp. 26,588.49 ▲0.5%

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