Correction higher tests the old floor
The AUDUSD has moved to a new session high in the process has moved back above the old floor built on September 20, September 21, and September 23. In trading yesterday, that floor was broken and the price quickly moved to the downside. The low reached 0.71684. The price today has seen a rotation back to the upside.
The price high as just reached 0.7230. The swing low from September 24 at 0.72354 will be the next upside target. Above that level and the falling 100 hour moving average at 0.7243 is joined by the 50% midpoint of the move down from the September 24 high to the low reached this week (at 0.72422). Get above that level and the falling 200 hour moving average at 0.72509 would be targeted.
The dip buyers are getting some relief above the old four, but the price needs to maintain the bullish bias now that the target has been met. Failure, and we could see a rotation back to the downside as traders react to the disappointment.
