The AUDUSD moved lower in the first half of the week, with the high for the day reached in the early hours of Monday. The fall bottomed on Wednesday when the price reached a low corresponding to swing highs and lows from November and again in December. Today’s return to that level attracted risk-focused buyers, and the price has moved modestly higher.
That move to the upside has now taken the price above the 50% of the move up from the October low. That level comes in at 0.65699, and the 200-day MA at 0.65797. The high reached 0.6601.
Going into the new trading week, the 50% midpoint and 0.65699 will now be a close support level. Stay above keeps the buyers and a corrective move higher in play. The broken 38.2% at 0.66407 would be the next upside target.
On the downside, a break back below 50% could see a return to the lows for the week.
Watch the 50% midpoint for close clues.
This article was written by Greg Michalowski at www.forexlive.com. Source