Back above March lows. Above 38.2% retracement
The AUDUSD is trading to news session highs, and in the process has moved above the April low at 0.6987,the March low at 0.7002 and the 38.2% between those levels at 0.6994. The high just traded to 0.7022. The broken levels are now risk for longs.
- The next target on the daily chart above comes in at 0.70344. That is the 50% midpoint of the move down from April’s high.
- The 0.7052 is another swing level (Feb low and swing low from early April).
- The 100 day MA is at 0.7069.
Drilling to the hourly chart, a trend line connecting highs from May 24, June 4 and June 5 cuts across at 0.7032 (and moving higher). That is near the 50% midpoint on the daily chart at 0.7034. It could give traders looking to take some profit a level to lean against.
If the bulls are to stay in control, I would expect the 0.7000 level to be a dip buying area. The price can go down to 0.6987 and still be ok for the bulls, but I still expect that the natural level at 0.7000 should be a key barometer for intraday traders.