AUDUSD bounces off its 100 hour moving average today and extends above an old swing area. | Forexlive

The AUDUSD moved lower in the late Asian/early European session, and in the process retested its 100 hour moving average (blue line in the chart above). Recall from Friday’s trade, the price based against the 100 hour moving average and moved higher. So retesting and holding was a more bullish signal from a technical perspective.

The price has subsequently moved above an old swing area between 0.6691 and 0.67036. Looking back to February 27 through March 7, the price bottomed in that area before breaking lower on March 7 on its way to its low price which was reached on March 10 at 0.65634.

Admittedly the price has traded above that the old swing area on a number of occasions last week as market volatility led to extensions to the upside that for the most part failed. Earlier today there was a failure on the top side as well.

However with the price back above that swing area (and the 100 hour moving average finding willing buyers as well), the buyers are more in control. The high price earlier today reached a 0.67295 and remains the next key target. Above that is the 50% midpoint at 0.67417.

Risk for traders looking for more upside is the swing area down to 0.66910. It will be nice to stay above the 38.2% retracement as well at 0.66997 (call it 0.6700).