AUD/USD sits lower on a firmer dollar today, but price action rests in between both its key hourly moving averages
The low today hit 0.7297 but price is now keeping just above 0.7300 as dollar gains ease up a little on the session. The pair is still down by nearly 0.4% though with price action resting in between both its key hourly moving averages.
That suggests the near-term bias is more neutral, with support around 0.7300-08 somewhat holding for the time being.
That said, sellers are settling into a good spot with the downwards trendline offering resistance since the start of the week, and that is giving sellers added momentum.
However, the key near-term levels to watch are still the 100-hour MA (red line) @ 0.7356 and the 200-hour MA (blue line) @ 0.7283.
For there to be firmer direction in the pair, price needs to break on either side. As things stand, we may continue to sit in between these levels ahead of the US jobs report.
The dollar may be keeping firmer for now, but there still isn’t quite a strong indication of a further technical correction in AUD/USD.
I’d argue that keeping an eye on EUR/USD is worthwhile as that will also be a key focus for dollar pairs but for AUD/USD, a more convincing run to the downside will only materialise on a break under its 200-hour MA.