The AUDUSD approaches ceiling area from last week

Technical Analysis

Author: Greg Michalowski | audusd

AUDUSD running higher after the early move lower failed

The AUDUSD is approacihng a ceiling area from last week at the 0.7128-309 area. The high today reached 0.71272 and has backed off a little ahead of that key ceiling area. The pair moved into that area on every day last week with the exception of Thursday (high reached 0.71267 and reversed).  

AUDUSD running higher after the early move lower failed
The price today did get a boost earlier in the day after a fall below a lower trend line failed. The move higher, then found support buyers near the 200 and 100 hour MAs (green and blue lines).  

Do sellers keep the lid on the pair?

Four out of five days of sellers against the area makes it an easy, low risk trade for sellers with stops on a break above...

Drilling to the 5-minute chart below, the price move off the high is testing the underside of the broken trend line. Below that is the 38.2% -50% of the last move up at 0.7115-18.  Move below each, takes some of the wind out of the bullish sails. Stay above and we may see another test of the key ceiling area from the hourly chart. 

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