Yesterday, the AUDUSD trended lower and was the weakest currency of the day. This was before the Employment report. That report came in a little better than expected +24.1 K vs 20.0K. The prior month was revised to -23.7K from -29.7K. The Unemployment Rate came in at 6.2% vs 6.2% last month. Full time employment rose 33.4K vs -34.9K last month. The part time fell -9.4K vs +11.2K last month.
The correction today stayed below the 38.2% retracement level.
The price wandered higher over higher but found sellers against the 38.2% of the move down yesterday at the 0.86321 (the high came in at 0.8626). In the New York session the price is moving lower again and is looking toward the low for the day at 0.8552. Another key target level, not far from that low, is the 50% retracement of the longer-term move from the 2008 low to the 2011 high. That level comes in at 0.8542 (see monthly chart below).
Typically, this level should find buyers and indeed it has shown yesterday and earlier today that the buyers are leaning against the level. The question becomes, can the buyer do it again after what was a less than stellar correction from the lows yesterday and today?
The general rule is that against a key level like this, traders who are short from above can always lean against it to take partial profit. They can also lean against it and have a close reverse stop on a move below the level. So expect the same buying. However, with the EURUSD and GBPUSD at the lows, the potential exist for that flush out break by all. In other words, correction over, lets go further. Key moment.
The AUDUSD is approaching the 50% of the move up from the 2008 low to the 2011 high at 0.8542
