Leaners winning
As the dollar was getting sold into the fixing, I posted:
As the London month end fixing runs into some dollar selling (and stocks move higher), the AUDUSD is tracking higher and getting closer to some pretty good resistance. The 200 day is currently at 0.72955. A trend line connecting the recent highs on the daily is at 0.7300. KEY, key level. I would expect some stall against the area on the test with stops on a break
The risk was defined and limited against the lean level. The lean level held (I guess its "a wall" - maybe I'll start using that), and the price is trading lower.
Can the rally restart?
Sure, the move is so far a correction but there is some more technical weakness seeping in...
Looking at the 5-minute chart intraday price below, the price has moved below the 100 bar MA and a trend line (more bearish). The 200 bar MA is being tested now (at 0.7271). The 50% is also being tested (at 0.72677).
A move below the 50% opens up the downside for more of a walk down on this move lower.
Risk now? Traders short would love to see the broken trend line remain a ceiling now. The 0.7285 last swing high may also be a risk intraday to preserve some profit from shorts from above.
The next targets below are the 61.8% at 0.72614. The 0.7234 is the 38.2% of the move up from the low for the week.
