The AUDUSD has moved further out of the woods in trading today. I have been looking for a break out of the confining range for a few days now. On Friday, the market tried the downside and failed. The price reversed on that day and so did the bias (moved above the 100 and 200 hour MA in the process – blue and green MA lines in the chart below).
AUDUSD into clearer pasture today. Can it stay there?
Yesterday, in a choppy session the price held support and stayed above the support below at the 100 hour MA (blue line in the chart below) and broken trend line (see post from yesterday HERE).
Today, the price has moved above most of the congestion area and into a clearer pasture (above the red box in the chart above). This is the third look outside the dense forest of activity. Can the price remain in the green field (above 0.8823-33). Look for buyers against this area as no one likes a market that consolidates for too long. Trends are where the most money is made (and lost).
Looking at the daily chart, the up and down action in trading this month is evident from the collection of green and red bars. The price today is not totally out of the woods as is evident from the chart as well, but the price is currently above the highest close going back to September 24th (the high close for October comes in at at 0.8838).
Should the buyers keep the price out of the consolidation area, the high for October at 0.8897 becomes the next target, followed by the 38.2% of the move down from the September high at 0.89318. The 50% of the move down from the September high is also a bullish target at the 0.90213 – and doable.
Today (and going forward) is all about staying out of the woods. IF it can be done, the transition from non- trending to trending has the potential to see a larger corrective move higher.
AUDUSD above highest close since September 24 (at 0.88388)
