Per the prior post from yesterday (Watch the AUDUSD: Coiling like a snake), the AUDUSD has been coiling like a snake and the price fell in the Asian session, pushing the price below the lower trend lines on a way to new lows for the week at 87.18. The range for the week extended to 114 pips (still low) and it looked like the break was on. However, no other currency joined in the momentum party and the selling dried up. The failure of the break below the trend line and the subsequent move back above the broken levels including the 100 and 200 hour MA, the 50%, the trend lines and lows for the week, has changed the sentiment and we are seeing a break above the topside trend line (It really changed on the move back above the lower trend lines – you can see it in the test before the last move higher).
Can the momentum higher continue? That is what traders will be looking for. I wish it were not Friday….
AUDUSD broke lower. Failed. Breaking higher now.
