AUDUSD completes the down and up lap in trading today

Technical Analysis

Author: Greg Michalowski | audusd

The price has move back up to the session high at 0.6853

The AUDUSD fell in the Asian session, but the fall ended up stalling near its 100 day moving average at 0.68143. The low price for the day reached 0.68125 before rebounding back to the upside. 

The price has move back up to the session high at 0.6853_
The move higher has now taken the price all the way back up to the session highs at 0.6853 (new highs 0.68545). The price is stalling after completing the full down and up lap in the pair.

That is not surprising. Markets aren't supposed to move sharply lower and then sharply higher retracing the fall move (although it certainly does happen). As a result there can be some apprehension. 

Nevertheless should the price extend the rally up above the 0.6853 level I would expect that sellers against the old high would look to cover on fears of a continuation and a move above the high from yesterday at 0.68612.

Should the price rotated to the downside, a lower trendline currently comes in at the 0.6446 level on the 5 minutes chart. That would be step 1 in a corrective move lower. Below that and the rising 100 bar moving average at 0.68385 currently (blue line in the chart below) would be another target that is broken would be more bearish.

AUDUSD has completed the down and up lap


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