100 hour MA stalled the fall for the second day
The AUDUSD has traded in an down and up range, and trades nearer the highs for the day, but the last 4-5 hours have been confined to a very narrow trading range, off the highs. Momentum higher faded.
What is of importance technically is that at the low today, the price bounced off the 100 hour MA for the second consecutive day. Buyers came in and bought the dip against the level. That is bullish. Remember last week, the buyers started to take control, by holding support at what was a triple bottom at 0.70405 (see blue numbered circles).
Having said that, although in control above the 100 hour MA, the corrective move has only made it up to the 38.2% of the last move lower (or near it).
Looking at the daily chart, that level comes in at 0.7145. There are some swing lows at 0.7141-43 from September as well. If the buyers are to take more control – and keep control – getting and staying above that level is the minimum for the bulls. Failure to do that, and this move higher looks like a standard correction.
So that area. If we are able to get and stay above, we should see more upside potential with the topside trend line on the hourly at 0.7154 and the 50% of the last move down at 0.7177 as the next targets.