Stalls ahead of the 50% retracement (from August 21 high)
The AUDUSD pushed above the 200 hour MA and trend line yesterday and moved higher on better than expected employment numbers. That run took the price to the 38.2% retracement (from August 21 high) and the 0.7200 level.
The price consolidated but moved higher on the weaker CPI and flow into the risk pairs as stocks rallied. That pushed the price above the 38.2% and 0.7200 level.
The high reached stalled ahead of the next key target at the 0.7233-35 area. That area is home to the 50% and the swing highs from August 31 and September 4th. The high reached 0.72287.
The correction – off the day highs – has taken the price back to the ubiquitous 38.2% retracement and 0.7200 level. There is something about that level and it is a risk/bias level for traders today as a result.
We trade around 0.7210 currently. It is not far from that “bias level” but hold it and the bulls stay more in control. Move below and the bets are off (the bullish run is muddy again).
One concern is the stocks have come off on the Trump tweet. Those tariffs on China will do wonders for the deficit but what will it do for the economy?