The AUDUSD pushed larger through the Asian session, extending beneficial properties as much as Friday’s excessive at 0.66683. That degree proved to be a sticking level as soon as once more, as sellers leaned in opposition to it and compelled a modest pullback.
The rejection has arrange a potential double high, which provides sellers an necessary foothold in what has in any other case been a bullish pattern for the pair since August 22. From a danger perspective, this affords sellers the flexibility to “lean in opposition to the excessive with restricted danger”—conserving stops tight above the 0.6668 space—whereas aiming for a bigger payoff if the draw back develops.
For now, staying under 0.6668 provides the sellers some management – a minimum of within the brief time period – however there may be nonetheless work to do. The primary key draw back goal comes on the rising 100-hour transferring common at 0.66293. Recall that in Thursday’s session, the corrective dip discovered help at this very degree (and briefly traded under), earlier than the pair rotated again larger. That bounce was fueled by weaker-than-expected US preliminary jobless claims, which gave AUDUSD one other leg up.
If the 100-hour transferring common breaks, momentum might shift extra firmly to the draw back, exposing the 200-hour transferring common at 0.65917 as the following key goal.
On the flip facet, a break above 0.6668 would invalidate the double high and put patrons again within the driver’s seat. That will open the door for a retest of the November 2024 excessive at 0.6687, which additionally converges with a rising trendline off the each day chart—making it a vital upside goal.
