AUD/USD buyers near a key test of the recent upside run
The pair is inching a little higher ahead of European trading, touching 0.6565 currently and just shy of the 100-day MA (red line) @ 0.6567. This will mark a key test for buyers amid the recent upside run in the pair over the past month or so.
A break and close above the 100-day MA will see buyers turn the bias in the pair to being more neutral, opening up the path towards a potential test of the 200-day MA (blue line).
The latter has been a stubborn resistance level for AUD/USD for more than a year already, with any break above that not lasting the course as evident by the late December move – owing to thinner liquidity conditions for the most part.
Although the pair has already posted solid gains over the past month or so, breaking the key levels above could still set off further gains towards 0.7000.
As such, keep an eye on the key daily moving averages now for AUD/USD. They are going to be the key lines in the sand in deciding whether or not we are seeing a breaking point in dollar bulls across the board.