Below the swing area, trend line and a swing area put a little doubt in the bull for the AUDUSD
The strong US job reports led to a temporary spike higher in the AUDUSD, but the pair stalled short of the European morning high at 0.70122 and also failed to remain above the swing highs from Wednesday and Thursday at 0.6982-86. A little sign of selling.
The price now has also moved below a trend line connecting the lows from yesterday and today and another minor swing level at 0.6956. The price has recovered a bit, but still remains below the broken trend line.
The combination has me wondering if there is some profit-taking that could lead to more downside probing for this pair.
Keeping me cautious is that the low for the week was reached in the 1st hour of trading down at 0.6647. The high today was up at 0.70122. So the buyers have been in control and stayed in control for the entire week. If the risk on flows start, we could see continuation.
The price also remains above the close from yesterday at 0.69416.
Perhaps it’s a move below that close from yesterday that will tilt the trading bias more toward the selling side as we head into the weekend – but just as a trade. The price still remains above the 100 hour MA at 0.68917. It would take a run below that level to solicit more selling.
Looking at the daily chart, the high price today at the 0.70122 inched closer to the high price at the end of December which reached 0.70314. It still was 19 or so pips away but that level is a key bias defining level for the pair and something to target on more upside momentum.
So some intraday bearish tilt, but nothing to panic about yet