The AUDUSD has seen a corrective move higher in trading today.
Recall from yesterday, the price extended to a new low for the month taking out the 0.6607, but only by a few pips. The low price reached 0.66043. In the video, I spoke about getting back above resistance at 0.6618 – 0.6625 as a minimum retracement level that might disappoint sellers. In the Asian session today, the price did see price action back above that level, turning sellers into buyers. More recently, the price has also been able to extend above the 100-hour moving average (albeit with some difficulty). The last time the price traded above the 100-hour moving average was back on May 11 when the price was trading at 0.6764. Today the 100-hour moving average is at 0.66565. The current price trades at 0.6662. The high price today reached 0.66742.
What now?
Staying above the 100-hour moving average will be eyed by traders at 0.66565. On the top side, the 38.2% retracement of the move down from last week's high cuts across at 0.66858. The falling 200-hour moving average (green line in the chart above) comes in at 0.6688. Both of those levels would need to be broken to give the buyers more confidence and more control as well.
A move back below the 100-hour moving average with momentum would disappoint the buyers and could see further rotation back down toward the swing area near 0.6618- 0.6625.
