<p style=““ class=“text-align-justify“>The pair is staying in the hunt for a third straight day of gains after the surge to fresh two-month highs upon the US CPI data release on Wednesday. The better risk mood is certainly helping and <a target=“_blank“ href=“https://www.forexlive.com/news/equities-nudge-higher-as-risk-appetite-picks-up-20220812/“ target=“_blank“>the early ground covered so far today</a> is also bolstering sentiment with the pair holding near session highs around 0.7120-25.</p><p style=““ class=“text-align-justify“>Of note, buyers managed to breach the 100-day moving average (red line) yesterday and that opens up some room to roam to the topside but there is another key resistance level that is lurking nearby. The 200-day moving average (blue line) stands at 0.7149 and that may help to limit a further advance in the sessions ahead.</p><p style=““ class=“text-align-justify“>The dollar is trading more mixed right now with gains seen against the likes of the <a target=“_blank“ href=“https://www.forexlive.com/news/eurusd-lacks-poise-on-break-higher-this-week-20220812/“ target=“_blank“>euro</a> and <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-fails-to-clinch-upside-break-on-the-week-20220812/“ target=“_blank“>pound</a> and if risk appetite gets sapped as it did again late yesterday, I doubt the aussie can hang on to gains before we get to the weekend.</p><p style=““ class=“text-align-justify“>In any case, we are now trading in between the two key levels highlighted and the next trading bias for the pair is rather straightforward. Break above the 200-day moving average and buyers will open up the path towards retesting the May and June highs around 0.7266-82 while a break back below the 100-day moving average will put sellers back in control with the potential to fall back towards 0.7000 as the key target.</p>
This article was written by Justin Low at www.forexlive.com.
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