Risk on
The AUDUSD is trading at new session highs and in the process is moving further away from the 100 hour MA (currently at the 0.6975 level). China trade data was not so hot today, but the AUDUSD did not take out lows from Monday's trading. That - along with a stabilizing/rising stock market - has helped turn the sentiment more positive.
The next targets look toward the:
- 0.70144 - 38.2% of the move down from the August 28th high
- 0.7020-26 - Trend lines
- 0.7044 - 200 hour MA (green line in the chart above)
- 0.7060-68 - Old lows and highs (see yellow area in the chart above.
The low on Friday extended to 0.68966 toward the close.
Looking at the 5 minute chart, the pair has a couple trend legs higher now. The first move saw, the correction stall near the 38.2% - before consolidating and starting the next leg higher (from 0.6974 to the current high). If the buyers are to remain in control, look for corrections to find buying near the 38.2-50% retracement area.
