The AUDUSD has continued the run higher today with a break above its 200 hour MA at 0.7106. The move above that MA is the first since November 2nd when the price broke at 0.75057. The low price was reached last Friday at 0.6992 (513 pips from the break point).
The break on the hourly chart above was preceded by a break of the 100 hour MA (blue line) at 0.70696, and also a swing area between 0.70893 and 0.71057.
What now?
Going forward, the break should be significant and should lead to additional corrective upside probing. The 0.71556 to 0.71723 area (see green numbered circles) is the next upside target area. Above that the 38.2% retracement of the trend move down from the October 28 high comes in at 0.72071.
Drilling to the daily chart below, the pair at the low last week, tested a swing area on the daily chart between 0.69901 and 0.7005 (see yellow area and red numbered circle on the daily chart below). The pair had earlier broken below the 38.2% retracement of the move up from the 2020 low at 0.70525. The 38.2% retracement was broken earlier today. The price has more recently moved above the August swing low at 0.71057. That is very close to the 200 hour moving average increasing in the levels importance going forward.
Buyers are making a play on the hourly and the daily chart. It is still early on the correction, but the buyers are winning some battles along the way today.
