Bounces off the 200 hour MA again. Heading back down toward it.
The theme of the AUDUSD has been “Find buyers against the 200 hour MA and bounce higher”.
That trading strategy has worked the last 6 tests of the 200 hour MA line (green line) including today after the weaker than expected CPI data in the Asian-Pacific session.
The bounce off the line today moved up toward the recent swing highs which have centered around the 0.8113-18 area. There have been 4 highs in that area over the last 5 days. IF the theme on the downside is to buy the 200 hour MA, sell against the 0.8113-18 is another theme for traders.
At some point the theme for traders will be broken. We are moving back toward the MA currently, and I would expect that buyer should stick a toe in the water. However, if there is a break below (and then below the trend line at 0.8040), the gig may be up for the bullish run in the AUDUSD.