The AUDUSD has been trending higher after bottoming in the London session. It has tested the 200 hour MA (green line) at the 0.8681 level, the highs from yesterday at the 0.86815 and the the 38.2% retracement at the 0.86814 level. The combination makes for a key line in the sand for the pair. Stay below and the sellers – even in the trend like move, can have some satisfaction. Move above and the bias turns more to the upside. NOTE that the moves below the 100 hour MA and trend line both yesterday and again today, gave the buyers more confidence on the failures and have helped contribute to the moves higher.
The AUDUSD has a bunch of resistance against the 200 hour MA, highs and the 38.2% at the 0.86814 area.
Looking at the 5 minute chart, the price momentum off the low has been trend like. The pair has run into the cluster of resistance which has slowed that move, but with the opportunity to push lower – and failing both yesterday and today – there may be more of a desire to buy a dip, then to keep the selling pressure on. The 38.2% -50% of the move up comes in at 0.86365-473, and this will be eyed as support. Stay above on a correction and the buyers will have the upper hand. Note the low from November 4th came in at 0.8644 increasing the areas importance.
When a key technical level is tested and holds it deserves attention but so does the correction off that level. Shorts from above, have risk defined. They need the satisfaction from the push below the retracement areas now to increase directional confidence.
AUDUSD had a steady move higher with the 38.2-50% holding support.
