The 100-day transferring common is capping good points for now
The pair has been on run greater for the reason that flash crash because the aussie benefited from improved danger sentiment in markets whereas the greenback struggled on a extra dovish Fed rhetoric. However the pair now runs right into a key resistance stage within the type of the 100-day MA (purple line). That stage sits at zero.7178 on the day.
Except patrons discover a strategy to break above that, there will not be any additional extension to the upside to check resistance ranges seen @ zero.7239 and zero.7315 subsequent. That is very a lot the identical scenario as what USD/CAD is experiencing proper now.
Wanting on the hourly chart, the near-term bias stays extra bullish as value holds above the 2 key hourly transferring averages. However by way of buying and selling sentiment, value is mainly sitting on the “excessive” proper now because it runs into the important thing resistance stage above.
Merchants can be awaiting an additional catalyst to both justify a transfer greater or see a transfer again in the direction of testing the 100-hour MA (purple line) @ zero.7137 if there’s cause for a pullback.
On the day forward, be careful for danger sentiment within the US money fairness market but additionally as Fed audio system are due in a while as properly. Additional dovish remarks can be a detrimental for the greenback and that could be the wanted catalyst for value to interrupt above the 100-day MA and lengthen additional to the upside.