The 0.6560-69 is home to a number of swing highs going back to end of April
The AUDUSD has moved back up to a swing area at the 0.65606 to 0.65693 area. That area has stalled at highs starting on April 30 and again on May 11. Today, the area was tested in the early European session, and the price backed off. The corrective move lower tested the swing high from May 13 and bounced back up.
We are currently retesting that swing high area once again. Will the sellers keep a lid on it again?
At areas defined by multiple tests, there is always low risk traders who will lean. Risk can be defined and risk can be limited. However, on a break higher, those sellers will likely cover (and may go long too).
What gives the buyers some added confidence is that the price stayed above the 100 day MA at 0.65049 today. Going back to April 30, the price on that day did crack the 100 day MA, but momentum stalled and the price fell back down. On May 8, May 11 and May 12 the price moved above the 100 day MA and failed on each of those moves as well.
The break above the 100 day MA yesterday – and the holding above the level today – is a step in the bullish direction (and something different). Advantage buyers with work to do….
Below is the look from the daily chart. Getting and staying above the 100 day MA has not been done since January. Hence the “added confidence”.