Lower channel trend line stalled the fall
The AUDUSD fell below Asian session lows in the New York morning session and extended through the 61.8% retracement and down to a lower channel trendline at 0.7219. The low price reached 0.72214.
I outlined those levels in an earlier post:
Technically, getting below the 0.72509 level (low for the weekend lowest level since August 27), would have traders looking toward the 61.8% retracement of the move up from the August 20 swing low at 0.72414. Below that and traders will be eyeing the lower channel trendline which comes in at 0.7222 currently (and moving lower).
Holding the level, gave buyers hope for a rebound and indeed the price has moved higher.
The move to the upside has now taken the pair up to test the old topside channel trendline at 0.7269. It would take a move back above that level, and then the 50% midpoint of the range since August 20 at 0.727412 give buyers more confidence. For now however, there is some cause for pause against the risk defining level.
If the price should rotated lower, a move back below the 0.72509 would once again be eyed as a more bearish move.
