Both the AUDUSD and NZDUSD have been trading similarly over the last two trading days. Yesterday, the AUDUSD led the way with a rise early in the Asian session after stronger-than-expected CPI data. Buyers then turn to sellers and pushed lower and lower into the close. The NZDUSD followed that lead.
In trading today, the selling in the two pairs continued falling to newer lows for each. However buyers reentered and each saw a snapback rally that extended back toward its falling 100-hour moving averages. Each of the pairs stalled the rally today against that MA level.
So sellers had their shot. Buyers started to take their shot on the corrective move higher but have found the 100 hour moving average is stalling the rally.
Going forward, that 100-hour moving average will be a key target to get to and through if the buyers are to take more control. On the downside, the inability to extend lower may give buyers on dips an idea. In this video I outline the trade and risk defining opportunities.