The AUDUSD broke above it 38.2% retracement of the 2023 trading range as 0.66087, and in doing so increase the bullish bias from a technical perspective. He would now take a move back below that 38.2% retracement to hurt the buyers and give them some cause for pause that more upside momentum is in jeopardy.
Another risk defining level for buyers is the 200 day moving average. On Monday, the price extended above that moving average at 0.65817 and moved toward the 38.2% retracement target. More conservative buyers would look toward that moving average as a risk defining level.
So overall the buyers are taking more control. With the break of the 200 day moving average and the 38.2% retracement there is a lot of resistance until the price extends toward the 0.67000 natural resistance level. Above that the 50% midpoint of the 2023 range comes in at 0.67134.
This article was written by Greg Michalowski at www.forexlive.com. Source