Narrow ranges all around the FX market, but AUD/USD quietly inches higher
Although the pair is only trading within a 26 pips range for the day, it’s just 4 pips off the highs at 0.7870 currently.
Anyway, on the daily chart, the pair’s recent bounce from the 100 and 200-day MAs is now running into some resistance levels sitting between 0.7875 and 0.7900. This will be a key test for buyers, to see if the recent run up isn’t just fueled by short-covering instead.
And as mentioned then, do keep in mind that on Friday we have a large option expiry for the pair sitting at 0.7850 – currently the size is AUD 2.6 billion.
Onto the hourly chart, it tells the same story as we have the 200-hour MA (blue line) sitting at 0.7881 and that’s providing yet another resistance level for buyers that they need to break above.