AUDUSD approaches a key low risk trading target | Forexlive

The AUD is the strongest of the major currencies today, and the move to the upside in the AUDUSD is now approaching a key resistance target defined by both the 50% midpoint of the move down from last week high (at 0.70287), to last week’s low (at 0.68117).

That retracement level comes in at 0.6920. Also being tested near that level is the falling 200 hour moving average (green line in the chart above) which comes in just above the retracement target at 0.6922. The high price just reached 0.69201.

Risk focus traders looking to sell will use the area as a level to a lean against with a short-term stop on a break above (look for momentum on the break). Sellers would then look toward a rotation back toward the 100 hour moving average at 0.6899. Move below that lower MA level, would give the sellers more confidence that the corrective move higher has run its course.

Conversely buyers from earlier today (or above the 100 hour moving average) would now want to see the the aforementioned technical levels broken – and remain broken. A move those levels would target the high from Thursday at 0.69354, followed by the 61.8% retracement of 0.69458.

Note that the high price on Thursday stalled against both the 100 and 200 hour moving averages (blue and green lines)