The AUDUSD surged sharply higher after headlines crossed that the US and Iran are in the final stages of talks, helping fuel a broader risk-on move and weighing on the US dollar. Among the major currency pairs, the AUDUSD is the strongest performer today, up around 0.76%. The rally pushed the pair to a session high of 0.7174 before easing modestly to trade near 0.7163 currently.
Technically, the bullish move gained momentum after buyers leaned against a key swing area support zone between 0.7100 and 0.7113. Once support held, the pair accelerated higher, breaking above a swing level at 0.7134 and then pushing through the 100-hour moving average at 0.71485. That moving average is now an important short-term barometer for the pair. Staying above it keeps buyers firmly in control and maintains the bullish bias. A move back below the level, however, could disappoint bullish traders and trigger some profit-taking after the sharp run higher.
On the topside, the next major target comes in near the 200-hour moving average at 0.71944. That level also sits within a broader swing area resistance zone between 0.71936 and 0.7200, making it a key upside target and potential battleground between buyers and sellers going forward.
The NZDUSD is also higher by about 0.70% on the day. It too has moved above its 100 hour moving averages 0.5856. The 200 hour moving average of 0.5901 is the next upside target.
This article was written by Greg Michalowski at investinglive.com.
