The AUDUSD had a volatile up-and-down price action in the Asian/Pacific session. The price action initially saw the pair extend above its 100 and 200-day moving averages, the top of an up-and-down “red box”, and the 38.2% retracement of the move down from the June 16 high.
The initial move to the upside stalled the AUDUSD pair near a swing area low near 0.6740 (the swing area is between 0.6740 and 0.67546). The subsequent fall into the European session took the prize all the way back through the 200-day moving average and down to the 100-day moving average (the higher green and blue lines at 0.66986 and 0.66625 currently). The day’s gains were fully retraced, and the technical bias was shifting more to the downside.
However, the lower-than-expected US CPI data goosed the AUDUSD price to the upside and back above the MAs, the high of the “red box” and the 38.2% at 0.6711. A short time later the swing area between 0.6740 and 0.67546 was broken, and more recently the price has been trading above and below the 61.8% retracement at 0.67829.
The current prices trading at new session highs at 0.6794. The next target comes against the swing level near 0.68068 and then at 0.68352.
Close risk can be the 61.8% retracement at 0.67829. For buyers with more risk tolerance to the downside, a move back into the swing area between 0.6740 and 0.67546 would have traders nervous and sellers hopeful of a break below the lower level.
Prior videos in the AUDUSD:
- https://www.forexlive.com/technical-analysis/the-audusd-price-action-makes-me-sayhmmmmmmm-20230711/
- https://www.forexlive.com/technical-analysis/audusd-shifts-short-term-bias-back-higher-with-daily-mas-looming-to-the-topside-20230710/