Caught up in the Olympics

Did you catch those cycling races at the Olympics this weekend.....Captivating.

The AUDUSD is breaking away from the peloton (the pack) as it suddenly moved up above 35 pips in a few minutes time. No real news, just a break through new highs and some follow through buying. The currency has been supported of late. It tested the 0.7600 level on Friday and again today and could not muster any momentum below the level. That has led to sellers turning back to buyers.

The pair tests the pre-employment highs from Friday at the 0.7663 level (moving above it now). The July high at 0.7675 is the next target. Stay above the 38.2-50% of the last surge higher and the buyers remain in control.

Looking at the daily chart below the price moved above the trend line on Friday only to close back below after the employment data. Today the pair is making another break from the resistance area above the trend line.

Will the break higher hold on an continue to trend or will the break run into a wall near the next finish line at the 0.7675 level and fade?