"Risk on" buying help by technical breaks
The AUDUSD as traded to the highest level since August 16 (the high reached 0.73729 so far today). The move to the upside has been helped by some "risk on flows" along with help from technical breaks.
Looking at the hourly chart, the price yesterday moved above a swing area between 0.7316 0.73226. That took the price into the sideways trading range that kept the market contain from July 21 to August 17 (see red box in the chart above).
However, after reaching a high near another recent swing area near 0.73416 and 0.73457, the price rotated back to the downside, and below that red boxed area.
In trading today, buyers returned. This time they were able to get above both swing areas (moving back in the upper extreme area). The last four hours (New York session) has seen a steady move to the upside as stocks moved higher (new record highs for the NASDAQ and S&P), and yields came off their high levels.
The 0.73416 to 0.73457 area is now close risk for the buyers. The 0.7316 to 0.73226 area is also a key risk/bias defining level. Stay above keeps the pair within the old red box with hopes of extending toward the August high of 0.74260.
Ahead of the August high, since the next key target area from the August 11 and August 13 swing highs. Those levels reached 0.73808 and 0.7385.
Getting above those levels would move the pair further into the sideways up and down area that controlled the market between July 21 and August 17 and keep the drive to the August high in play.
