The AUDUSD moved lower during the Asia-Pacific session, breaking below its rising 100-hour moving average after buyers had successfully defended that level during yesterday’s trading. The move below the 100-hour moving average represented a modest shift in the short-term bias, giving sellers an initial technical victory.
However, downside momentum began to fade during the European morning session as the pair found support against the rising 200-hour moving average. Buyers leaned against that level and pushed the price back higher. In early North American trading, the 200-hour moving average was tested once again, and for a second time buyers stepped in to defend the support.
As a result, the AUDUSD now sits between the lower 200-hour moving average at 0.72135 and the higher 100-hour moving average at 0.72353. Traders will be looking for a break outside of those boundaries to provide the next stronger directional clue. Until then, the price action points to a more neutral trading environment in the short term.
The NZDUSD followed a similar technical path. During yesterday’s trade, buyers defended the rising 100-hour moving average, but in today’s session the pair broke below that key support level. The decline extended toward a swing area between 0.5927 and 0.59355, with the low price reaching 0.5938 before stabilizing and rebounding.
Like the AUDUSD, the recovery rally stalled near the broken 100-hour moving average, currently near 0.5954, where sellers re-entered and pushed the pair back lower. For sellers to gain more control, they would need to force the price below the swing area low at 0.5927 and also below the rising 200-hour moving average near 0.5925. On the other hand, a move back above the 100-hour moving average with momentum would tilt the bias back in favor of the buyers.
Overall, both the AUDUSD and NZDUSD remain trapped within relatively neutral technical boundaries. The good news for sellers is that both pairs were able to crack below their respective 100-hour moving averages — an initial battle won. However, taking broader control of the market will require additional downside breaks and sustained momentum. The video above outlines the key technical levels in play and the roadmap traders are watching going forward.
