The AUDUSD is stretching back to the upside after an early US session dip saw the price fall below a swing area between 0.6973 and 0.6984, but stall short of the rising 100 hour moving average at 0.69546. The low for the day reaches 0.69614 before bouncing back higher.
The extension back to the upside has the pair looking back toward its high for the day reached in the London morning session at 0.70138. The price is also back above the 0.7000 level currently at 0.7006.
The swing high from last Monday reached a 0.70185 and is another target ahead of the extreme from last week at 0.70629. That high price from last Wednesday stalled near a topside trendline (see red numbered circles).
What would hurt the run?
WIth the price action trading messy around the swing area between 0.69733 and 0.6884 (see green numbered circles on the chart above), but ultimately breaking higher and running, that area will now be close support again. Stay above is bullish in the short term.
Ultimately, if the sellers are to take more control, they would need to break below the 100/200 hour MAs (blue and green lines) which are near the 0.6953 area currently (near converged). Stay above is more bullish.
Helping the upside is a run higher in US stocks. A snapshot of the market currently shows:
- Dow Industrial Average of 243 points or 0.73%
- S&P index up to 40 points or 1.0%
- NASDAQ index leading the charge with a gain of 182 points or 1.55%
The small-cap Russell index is also moving to the upside with a gain of 14.96 points or 0.80%. The volatile Cathie Wood ARK Innovation ETF is doing even better with a gain of 3.18% today.
The "risk on" tone tends to give the AUDUSD a boost.