Risk on flow lifts the AUDUSD back above its 100 hour MA
The AUDUSD has been rebounding today after five days of declines last week. That move lower took the price from a Monday high at 0.7372 to a low on Friday of 0.71057 (267 pips in total).
Today, the price could not reach the low from Friday (the low was around 0.7118), and favorable risk on trends started to take the pair higher.
The move to the upside has been trend like. The last hour or so of trading as seen the price break above its 100 hour moving average at 0.7190. The high price just reached 0.72037.. In the short term. Staying above the 100 hour moving average keeps the buyers in play and the corrective move on track for the next upside target at the 38.2% retracement of the move down from the August 11 high. That level comes in at 0.72137. Get above that and further upside would target the swing low from Wednesday’s trade at 0.7227. Move back below the 100 hour moving average (and stay below) and the correction is over.