AUDUSD and NZDUSD break below the 100 hour MA and continue to fall.
Dollar buying as yields rise.
Both the AUDUSD and the NZDUSD have broken below their 100-hour moving averages and are trending downward. Yields in the United States have returned to higher levels. Stocks in the United States are falling, with the Nasdaq leading the way. As a result, the dollar is soaring. Technical breaks in the AUDUSD and NZDUSD are contributing to the bearish trend lower.
When it comes to the AUDUSD, the pair has fallen below its 100 hour moving average at 0.73493 and is heading toward a target region of 0.73364. Below that is a swing zone with values ranging from 0.73276 to 0.73306. That area is above the 0.73155 area, which corresponds to the double bottom from July 28 to August 10.
Remember that over the last 15-16 trading days, the price of this pair has been moving up and down within a 110 pip trading range (over 3 weeks). As traders ping-pong between support below and resistance above, there isn’t much range. The market will eventually break out of the range, but until then, traders will likely lean at lows and lean at highs. However, the current bias is to the downside.
When it comes to the NZDUSD, it has fallen below both the 200 hour moving average of 0.70204 and the 100 hour moving average of 0.70116. The 200 hour moving average did halt the loss earlier in the day (London morning session), but it has now succumbed to the level and momentum sellers are on the break.
The next objective is around 0.69926, which is the 50% retracement of the run up from the July 28 low. During yesterday’s activity, the price found support near that level (the low reached 0.69907). If the price falls below the level, traders will be looking for 0.69803, followed by the 61.8 percent retracement at 0.69703.