The AUDUSD has had a strong week to the upside helped by risk on flows and improving and shifting technical bias. One of the big moves was a break above both the 100 and 200-day moving averages near 0.6560, and then the 38.2% retracement of the move down from the December high to the February low at 0.66059.
Today the price moved up and extended through the 50% of the same trading range, but found willing sellers, and rotated lower as some traders may have started to take profits ahead of the weekend.
For the rest of the day – and going into next week – getting back about that 50% retracement level would be needed to increase the bullish bias. On the downside, traders will be watching a swing area between 0.6612 and 0.6624 ahead of the broken 38.2% retracement at 0.66059 as support. Moving back below those levels would disappoint the buyers on the break higher and likely shift focus back to the downside.
In this video, I review of the shift to the upside, and explore what next in detail.