**AUD/USD Trades Sideways Above 100-Hour Moving Average After Rebound**
*Original article by Azeez Mustapha on FX Daily Report*
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**Market Overview**
The Australian Dollar (AUD) and the United States Dollar (USD) currency pair, commonly known as AUD/USD, has recently exhibited a period of consolidation after a moderate rebound. Following a move above its 100-hour moving average (MA), its price has been trading in a sideways pattern as traders weigh the prospects for both currencies amidst a mix of factors influencing their relative strengths.
This article will explore the current technical standing of AUD/USD, delve into the factors impacting its movement, and present a broader context for traders and investors analyzing this popular forex pair.
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**Recent Price Action**
– The AUD/USD experienced a brief rebound over the past sessions, pushing itself above the 100-hour moving average.
– Since this move, the exchange rate has settled into a range-bound phase, with prices oscillating sideways, suggesting a pause in either bullish or bearish momentum.
– As of the latest observations, the pair remains above the 100-hour MA, which is frequently monitored by short-term traders for hints of trend direction.
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**Technical Analysis**
*Support and Resistance Levels:*
– **Immediate Support:** The FX Daily Report highlights that initial support for AUD/USD lies around 0.6615, coinciding with the 100-hour MA level.
– **Deeper Support:** A breached 100-hour MA could see price action head towards the 0.6600 psychological mark, which also aligns with recent swing lows.
– **Resistance Levels:** On the upside, resistance can be found at 0.6670, and beyond that, 0.6700 serves as a formidable cap for any further bullish advance.
*Oscillator Indicators:*
– The Relative Strength Index (RSI) hovered near mid-range values, indicating neither overbought nor oversold conditions and aligning with the pair’s lack of strong directional bias.
– Other momentum indicators, such as MACD, also reflect neutrality, showing that market participants await a catalyst before committing to new positions.
*Moving Averages:*
– Price action above the 100-hour MA hints at lingering buyer interest, though the absence of significant follow-through buying reveals a cautious approach among bulls.
– A break and sustained move below the 100-hour MA may shift the near-term bias in favor of the bears.
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**Market Drivers**
1. **Australian Economic Developments:**
– The performance of the AUD is closely tied to domestic data releases, including employment statistics, retail sales, and trade balances.
– The Reserve Bank of Australia’s (RBA) policy statements and interest rate decisions continue to play a crucial role in dictating investor sentiment.
– Recent Chinese data, given China’s role as Australia’s largest trading partner, can also influence the AUD. Any signals of recovery or slowdown in China’s economy are rapidly reflected in AUD price action.
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