The AUDUSD moved sharply higher last week, reaching a high of 0.71802 before correcting lower into today’s trading.
That correction found support against the rising 100-hour moving average, currently at 0.71407. Buyers leaned against that key technical level and have since pushed the price back to a new session high near 0.7160.
The successful test keeps the buyers in firm control. As long as the price remains above the rising 100-hour moving average, the technical bias stays tilted to the upside.
The next target is last week’s high at 0.71802. A break above that level would open the door toward the 0.71966 to 0.72007 area, followed by another swing area between 0.72210 and 0.72283.
What would disappoint the buyers?
A move back below the 100-hour moving average at 0.71407 would weaken the short-term bias and have traders looking toward the 61.8% retracement at 0.71193. The rising 200-hour moving average is also nearby at 0.71131, increasing the area’s importance as downside support.
For now, the buyers leaned where they needed to lean and have been rewarded with a rebound. They remain in control, but getting above 0.71802 is the next step if the upside momentum is going to continue.
This article was written by Greg Michalowski at investinglive.com.