AUD/USD at the 200-Day SMA

by Admin

Awards 2013

AUD/USD Daily chart 4/15/2013 8:45AM EDT

AUDUSD

200-day SMA: The AUD/USD fell sharply to start the week. It held at 1.0580, below range highs around 1.06-1.0623. As we begin the 4/15 US session, the pair has fallen back to 1.04, tagging the 200-day SMA. This type of price action can be considered reversion to the mean. Also relative to the range, 1.04 area is around the central area, also reflecting “mean” price action. The idea is that the further way from this mean and closer to the range boundaries, the more like we will see a reversion.

Now that the price is in the “neutral” area, it is hard to identify direction. The 200-day SMA and 1.04 should give some minor, intra-session support, but I would limit my bullish expectation to be below the 1.0495 pivot for now.