The AUDUSD moved higher with the risk-on flows yesterday. However, the price did run into some topside resistance that stalled the pair.
IN the post and video, I referenced that area:
…the real test was just ahead. The price remains below a key swing area between 0.6896 and 0.69088 – a prior support zone that broke last week. That area now acts as resistance. A move back above would signal a return to the broader trading ranges suggest a break lower may have been a false move.
In trading today, the pair pushed higher in the early Asian session before rotating lower in a corrective move. The pullback found support at 0.6899, just above a key swing area low. Holding that level was important—it gave buyers the technical confidence to step back in and reassert control.
Since then, momentum has shifted back to the upside. The price has moved above the 200-hour moving average at 0.6932, extending to an intraday high of 0.6962. However, that rally stalled just short of the 38.2% retracement of the move down from the March high at 0.6969, leaving that level as a key upside barometer. Buyers still need a break above it to signal a stronger shift in control.
On the downside, the 200-hour moving average now serves as close support. As long as the price holds above that level, the bias tilts more favorably toward further upside probing. A sustained move higher should lead to at least a test of the 38.2% retracement, and a break above would open the door for additional gains toward the 0.7000 natural resistance and the 50% midpoint near 0.7010.
Bottom line: Buyers are back in control above the 200-hour MA, but the real test comes at 0.6969. Break it, and momentum can build further to the upside.
This article was written by Greg Michalowski at investinglive.com.
