Retraces back to the highs of the day
The AUDUSD moved up to a high of 0.79986 in the Asia-Paciific session, stalled against the 0.8000 area, and fell to 0.7939. That retracement level was where the 38.2% of the move up from Friday's swing low (the last leg higher). The buyers remain in control.
The price is back up rethinking about taking out the 0.8000 level.
A move above will next target a topside channel trend line at 0.8014 (and moving higher - see 4-hour chart above). A break above that level opens up the upside for more momentum.
The buyers remain in control:
- Last week a lower trend line was tested and held
- The price correction today stalled at the 38.2% of the last move higher.
The price action is choppy today, but the sellers are not taking control
On a break, the 0.8414 will be a more important level technically for me. Get above, smooth sailing ahead. Stall (and it will be a tough nut to crack on the test) and the sellers will have a shot to call a top.
