Higher 1Q GDP (1.3% vs 0.6% estimate), potential relief for EU problems, China cuts down the road, copper up – all are helping to contribute to the rise in the AUDUSD. The pair is testing the 38.2% of the move down from the end of April high of 1.04725 at the 0.99206 level . Is this enough?
One other thing to consider besides the fact the price is at a key Fibo level, is that the range is 193 pips from low to high. The 20 day average range is 106 pips for the pair. If there are longs that want to lighten up before the Beige Book, this is the level. Traders who sell and take some profit, can easily buy on a break above.
On a correction watch the 0.9900 area. An earlier high stalled at 0.9899 This is also the 50% of the last leg higher in the trend move. If the trend is to continue, this area should attract buyers. It would be a signal to me that the buyers are still firmly in control. If the price dips below, it could signal the stalling (or at least consolidation) of the trend.
