AUDUSD is erasing gains from better employment data and moves back into cluster of MAs

The AUDUSD moved higher earlier today after the monthly employment data was much stronger than expectations. The unemployment rate fell to 3.7% from 4.1% last month. The employment change showed a gain of 116.5K versus 39.7K estimate.

That data helped to propel the pair up toward a topside trendline, where sellers leaned (see chart below) and started the move back down.

The dollar buying in the US session has continued the move back lower. The price has now broken back below its 100-day moving average of 0.65845, and extended to its 100-day moving average on the 4-hour chart at 0.6560, and its 200-day moving average just below that level at 0.6558. Break below those levels and the 200-bar moving average on the 4-hour chart would be the last in the cluster of moving averages at 0.65425.

So buyers had a shot on the rise after Australia employment data. That shot failed against the topside trendline and the subsequent move back between the cluster of moving averages.

Going forward, the moving averages will be the barometer for more bullish or more bearish. Moving above 0.65845 (100-day moving average) is more bullish. Conversely, move below the 200-bar moving out on the 4-hour chart at 0.65425 is more bearish.

In between those extremes, and the technical bias is more neutral.

This article was written by Greg Michalowski at www.forexlive.com.