AUDUSD and NZDUSD run to new session highs on risk on flows

With the US stocks now up about 0.5% to 0.75% after trading near unchanged earlier in the session, the “risk on” flows are pushing into the commodity currencies including the AUD and the NZD.

Both the AUDUSD and the NZDUSD are pushing to new session highs. The AUDUSD is working on its ninth consecutive hourly bar to the upside. The NZDUSD is up eight of the last nine hourly bars.



The AUDUSD on the 4-hour chart

Looking at the 4 hour chart of the AUDUSD, the move to the upside has now taken the price above its 200 bar moving average on the 4 hour chart at 0.7200. The price high just reached 0.7208 that was just above the 38.2% retracement of the move down from the October high to the December low at 0.7207. A move above that level and the price would next target the December 16 high price at 0.7223. Move above that level and it opens up the door for further upside momentum.

Of note today in the AUDUSD, is the low price based against its 200 bar moving average on the four hour chart at 0.7124 level. Holding near that level gave the buyers the go-ahead to push higher.



NZDUSD on the 4-hour chart

The NZDUSD is also pushing higher after lows from last week and this week both stalled near the 0.67000 level. That was also near the 38.2% retracement of the range since 2020 (see post from yesterday outlining that level).

The price low today stalled at a swing area between 0.6735 and 0.6740, based and moved higher. The 100 bar MA on the 4-hour chart was broken at 0.67766 and has moved higher.

The pair is trading above a swing area between 0.67986 and 0.6804. That is now close risk for the pair.

The next major target comes in between 0.68225 and 0.6833


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