The AUDUSD is lifting off as it breaks above its 200 day moving average and 50% retracement of the move down from last Friday's high. Both those technical levels come in at 0.67429. The price is currently trading up at 0.6766 after reaching a high of 0.6768. The price is also now above the 61.8% retracement of the same over lower at 0.67575.
Close risk is now the 50% and the 200 day MA. Stay above keeps the buyers in control. Move below and with the fragile markets (from the recent chop), I would expect disappointment from the buyers. If it is time to move, it can't go back below that dual technical level.
On the top side, the highs from last week between 0.67921 and 0.6796 along with the 100 day moving average at 0.6799 and the high price from last week at 0.6805 are all the upside targets. Is there an interim level to target today? The high price from April 5 comes in at 0.6779.
The Philly Fed index was much weaker than expected. The leading economic index was also lower by -1.2%. Looking at the chart below, the year on year LEI is foreshadowing lower GDP growth. Looking at the previous recessions (grey areas), not surprising, the LEI led growth lower.
