AUDUSD moves higher on dollar selling. Retraces to 50% of last move lower.
50% at 0.70632
The AUDUSD risk-off flows seen earlier are dissipating and be replaced by lower USD sentiment.
Technically,the pair has moved above broken levels and that is contributing to a squeeze higher.
Looking at the hourly chart, the price in the Asian session tumbled below the 0.7050- 0.7054 area. That area was a floor in trading coming into today. The fall also took the price below swing low levels from earlier in October at 0.7040-42. That was all bearish.
However when the price moved back above the 0.7040-42 area, sellers turned to buyers and the price has subsequently squeezed back above the 0.7050-54 area as well.
We are currently testing the 50% retracement of the move down from Wednesday's high at 0.7063 and finding some stall. If the level is broken, the 100 hour moving average at 0.7073 will be targeted.
Technical support now back at the old week low floor at the 0.7050-54. Look for sellers if the 100 hour MA is tested.