AUDUSD back above the 100 hour MA as shorts squeezed
The USD has reversed the run higher off the higher CPI.
For the AUDUSD, it moved sharply lower after the inflation report, reversing the gains for the day and moved to a new low at 0.6927.
The price has since shot back higher (it is squeezing he shorts) and now trades at a new high for the day at 0.7045. That level is back above the 100 hour MA at 0.70203 and tests the 38.2% of the move down from the high last week. The retracement level comes in at 0.70458.
On the topside, more squeeze would have traders looking toward the 200 hour MA is at 0.70636. The price on Thursday last week moved below that MA and tested the MA level on Friday. A move above, would add to the squeeze.
Stocks in the US are now higher with the Nasdaq up 68 points ant the Dow up 269 points. That is helping the squeeze in the AUDUSD.
The NZDUSD is also trading at new highs and above its 100 hour MA in the process at 0.63615. The move lower in the NZDUSD tested the floor established yesterday and earlier today between 0.6275 to 0.62825 (see red numbered circles).
NZDUSD stalled at the floor from yesterday