AUDUSD tests a ceiling area
The AUDUSD has ticked to session highs after stocks ticked higher after the opening (a little risk on flows it seems).
The move ticked the pair to a new sesion high at 0.6933. That is in the swing area defined by a number of swing lows and highs going back to May 14. That area comes in at 0.69322-361. The high yesterday reached 0.6938, but could not gather any support on the break.
It'll now take more momentum above the area to excite more buying toward the 0.69550 area (50% of the last trend move lower from the May 7th high). In the meantime sellers may be more inclined to lean against the ceiling area (sell against with stops above).
Last week, the corrective move started after the pair could not break below the May 17 low. The floor that developed at 0.6854 was able to work above the 100 hour MA (blue line) and then the 200 hour MA (green line) during Friday's trade.
What may limit the move higher (and give cause for pause from the buyers) is that the RBA is expected to lower rates at their June 4 meeting (85% chance). That could be a headwind for the buyers on moves higher.
So although the bias is tryng to push higher, be on the lookout for those resistance sellers to limit the move (with stops above if the price action is not cooperating).
