Trades at session lows The AUDUSD has had a limited trading range today of about 36 pips. The pair is lower (USD higher) bucking the trend for the USD in most of the other major currencies. The basket of commodity currencies are more bearish overall on fears a trade war hurts them them the most.
Technically, the pair tested the waters above the 100 day MA at 0.77676 on a few occasions, but could not muster the buyers. That MA and the 200 day MA at 0.7783 is the key ceiling for the pair. The 100 hour MA at 0.7788 is moving down toward that 200 day MA. Stay below the yellow area in the chart below, and the bears are more in control.
The tariff bomb was dropped. Now we get into the potential for more fighting. That environment is full of uncertainty. However, technicals — like the key 100 and 200 day MAs — act as a risk defining barometer for the bulls and bears. Stay below bearish. Move above and the news might be shifting.