AUDUSD runs to the highest level since January 21

Steps higher after failed on break of lower trend line

The AUDUSD has extended to the highest level since January 21 in early New York trading.  The pair has run into topside trend line resistance at the highs at 0.7771 and backed off a bit, but the the price remains above the high from yesterday at 0.77554.  If the pair can stay above that level, the intraday bias remains firmly in the upsides favor.

Steps higher after failed on break of lower trend line

The pair has moved to the upside today was helped by a failure of a break of a lower trend line late yesterday and into the Asian session today.  The fall below the trend line should have led to more corrective probing, but it was not meant to be.  Instead the the price move back above the broken trend line and reestablish support against the low line (see green numbered circles 6).  

Holding that trend line, gave buyers the AOK to push higher and they did.  

Can sellers now lean against the topside trend line?  Yes. I can see it. you can see it. Everyone can see it.  Risk is defined and limited against the level, but you are going against the trend (the AUD is the strongest of the majors too).  NeverLook to get back below 0.77554 and stay below for the clue that some of the bullish bias is being deflated. 

If the pair does move above the topside line, the buyers remain firmly in control. 

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Categorized as Forex

By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

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