Test 100 hour MA. Break the 100 hour MA. Test the underside of the broken trend line.
It is Friday, but the AUDUSD is trading the technical levels (or so it seems. The 100 hour MA was tested after the employment report, the price moved lower. Then the 200 hour MA (green line) became a support. The 100 hour MA was broken (blue line). The price moved to the underside of the broken trend line at the 0.7468 area and we are seeing a move back toward the 100 hour MA.
The traders are trading the levels. We just finished the London fixing and now move into the final hour or so before those London traders close down and call it week (if they have not already). Those flows can influence the market.
We seem to be seeing those squaring up flow exert influence on other pairs.
The USDJPY fell and bounced off the 100 hour MA at 113.32. We traded up to 113.80 area.
The EURUSD is trading at it's NY session high as is the GBPUSD. The USDCHF just traded near it's NY highs. The point is, the end of week flows are in full force. The levels like the underside of the trend line in the AUDUSD, become levels to lean against as a profit taking level, or for traders looking to trade before the weekend and make a few pips. If you can lean, traders will lean (until the market closes).
