The AUDUSD buyer took the price higher after the weaker ISM flash data and Richmond Fed manufacturing data. The prehire has now taken the price above the 38.2% retracement of the move down from the April high to the April low. The level comes in at 0.6469 and is now close support. Staying above is more bullish. The price also moved away from a swing area between 0.6442 and 0.6455 . For buyers looking for more upside, that area is a more conservative risk.
On the top side there is some tough resistance coming against the 100 bar moving average on the four hour chart and the 50% retracement of the April trading range. Both those levels come in at 0.65028. I would expect that there would be some selling against that level with stops on a break above.
Stops moving to the upside are also helping the pair on risk-on flows. The NASDAQ and is now up 1.5% while the S&P index is up 1.15%.
This article was written by Greg Michalowski at www.forexlive.com.
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