AUDUSD moves back above 100/200 hour MA

The price remains confined in an up and down trading range

THe AUDUSD has moved back above its 100 and 200 hour moving averages currently near the 0.7367 area (blue and green lines near converged in the chart below). 

Admittedly, the price has been trading above and below that moving average duo over the last six trading days, as the market consolidates the declines seen in July that saw the price move down from a July 6 high near 0.7600. The low was reached on July 21 at 0.72889 (-311 pips).  The pair has been consolidating the trading between 0.73165 and 0.7413 (less than 100 pips) over the last eight trading days. 

The move back above the moving averages tilt the bias more to the upside. The next upside target comes in between 0.7387 and 0.73905. Above that and traders will look toward the 0.7400 and the high from last week's trading at 0.7413. 

Just below that high sits the 38.2% retracement of the July trading range. If the AUDUSD is to show signs of bottoming after the -311 pip decline from the high to low in July, getting above the 38.2% retracement is one of those minimum technical requirements (as is getting and staying above the 100/200 hour MAs). 

A move back below the 100/200 hour moving averages, would ruin the bullish tilt seen over the last few hours. That would be close risk for the buyers.  

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August 03, 2021 at 02:46AM
Greg Michalowski
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