AUDUSD continues its run to the upside and extends to the 38.2% retracement of move lower.

The AUDUSD has continued its move to the upside started yesterday when the price extended above about the 100 day and 200 day moving average is near 0.6559. In early trading today, those key moving averages held sport before the price started its move back to the upside. That run to the upside has now taken the price above the 38.2% retracement of the move down from the December high to the February low. That level comes in at 0.66059. Above that is a swing area going back to early December 20 between 0.6612 and 0.6624. The high price today stalled within that swing area, and the price has been trading above and below the lower 38.2% retracement since then.

What next?

After a sharp move, there is a natural desire to stall especially at a resistance area. The 38.2% retracement and swing area between 0.66059 and 0.6624 seems to be the stall area. That will need to be broken to increase the bullish bias.

Watch the 38.2% retracement. Watch the natural support at 0.6600 as well. So far the corrective low off of the high as reached 0.66009. A move below that level might disappoint the buyers and lead to more downside probing at least in the short term. Absent that, and the buyers are still more in control..

This article was written by Greg Michalowski at Source