The 200 day exponential moving average is the most looked at MA in the world. When in a down trend (see AUD daily chart from Sept '05) price action will remain below 200dMAe. When price hits avg many traders go short in down trend and vice versa for up trends. Also, many moving avg act as magnets to price.So for the last week 200 on the daily has been dragging price. On the hourly charts, the price action has been below 200 eMA since early Sept.
Incidently, the price action on the daily is above the 200 at present, so perhaps price may use the 200 for a spring board.
Commodities and the AUD. Commodities have been in decline through the summer and Australia exports commodities. Some link the AUD action to the price of Gold. When gold increase so does the AUD and when it is in decline the AUD goes up. I have not tested this but I read it some where.
Regards
Incidently, the price action on the daily is above the 200 at present, so perhaps price may use the 200 for a spring board.
Commodities and the AUD. Commodities have been in decline through the summer and Australia exports commodities. Some link the AUD action to the price of Gold. When gold increase so does the AUD and when it is in decline the AUD goes up. I have not tested this but I read it some where.
Regards