Price cracked above the 100 hour MA and moved higher
The AUDUSD is the strongest of the majors as the pair showed early technical bullish signs in trading today. I outlined the needs in the post from yesterday.
Specifically, the AUDUSD started to inch above the 100 hour MA (blue line) at the end of the NY session and took the price higher in the earlier hours of the new trading day. The price consolidated in the Asian session, but started to step higher as the early European session began.
The price rise moved the pair up for 6 consecutive hourly bars. The price made it to the 38.2% retracement at 0.71348 (the high reached 0.71374). Swing highs from September 23 also came in near that 0.71348 and sellers have entered.
What now?
If the buyers can get above the 38.2% level (and swing area) at 0.71348, the 200 hour MA at 0.71549 will be the next target.
On the downside, looking at the 5 minute chart below, the pairs has only corrected toward the 38.2% of the trend leg higher today. The 50% is at 0.71054 along with the rising 100 bar MA (blue line). If the price can stay above those levels, the buyers remain in control. Move below and the buyers should liquidate more.
