The AUDUSD is being boosted to a new higher level by the dollar selling. This pair has already enjoyed a number of steps higher in trading today – with each leg holding above the 38.2% retracement (see chart above). The current leg has close support at the 1.0402-06. Stay above and the bulls (trend move) are staying in firm control. Move below and some momentum may be fading with the trend move today. The range for the day is 99 pips so far which is above the 78 pip average over the last 20 trading days. So traders may look for clues of topping. A move below 1.0402 should provide a further consolidation/corrective clue for the intraday at least.
Until those sellers can take back some control (i.e. the trend shows signs of abating), however, the buyers remain in control. On the topside the next target comes in at the 1.04415 level. This is the 61.8% of the move down from the August high. This is a key resistance target. As a result, I would look for consolidation sellers against a test of this level.
Further higher, trend line resistance at 1.0456, and the underside of the broken trend line at 1.0488 are the next levels to eye on a break.
