Both the AUDUSD and NZDUSD are considered “risk” currencies, meaning they typically benefit when investor sentiment improves, stocks rally, yields ease, and demand for the U.S. dollar declines.
We are seeing that dynamic play out more clearly in the AUDUSD today
Looking at the hourly chart, the AUDUSD gapped higher on the positive developments out of the Middle East and, in the process, moved above its falling 200-hour moving average, currently at 0.70637. Aside from a few brief corrective dips, the pair has managed to hold above that key technical level, keeping buyers in control. The challenge for bulls, however, has been the 100-day moving average at 0.7083.
The pair has now made three separate attempts to break and sustain a move above that level, only to be turned back each time. As a result, a battle is developing between support at the 200-hour moving average (0.70637) and resistance at the 100-day moving average (0.7083). A decisive break above the 100-day moving average would shift the focus toward the next resistance zone between 0.7100 and 0.7113 and give buyers greater control.