The AUDUSD is trading higher and in the process has nearly erased the move down from the Asian session high. That Asian session high price reached 0.69594. The high price just reached 0.69588 - less than a pip from that day high.
The AUDUSD price has entered into a swing area defined by levels over the last 5 or so trading days (see red numbered circles). That area comes between 0.69538 at 0.69623. A move above that level, and traders will start to target the 38.2% retracement at 0.69954 and the falling 200 hour moving average at 0.6997. The price has not traded above the 200 hour moving average since May 6.
Given the buyers added confidence was the ability to base against the 100 hour moving average in the North American session. (See blue line in the chart above). Staying above that 100 hour moving average was an important bias and tilt. It would take a move back below the 100 hour moving average to hurt the bullish bias in the short-term.
Having said that, the swing area and the 200 hour moving average +38.2% retracement are the minimum objectives to get to and through if the buyers are to take even more control from the sellers. It is up to the buyers to prove that they can keep the momentum going.
