AUDUSD gearing up for a move higher?
Taking a look at the current AUDUSD D1 chart, we can see some signs that buyers are trying to extend the key support hold they last made on the 2nd of October. That test and hold started a 63 pip rally that has now been tested by sellers this trading week.
The AUDUSD started the trading week with a 26 decline mainly led by a push higher by the USD overnight; trade jitters could have been another leading factor which are set to resume later this week on Thursday. Today buyers have been back in the mix and at this stage have pulled back 16 pips of yesterday’s decline.
Price-wise what’s sticking out to us on the AUDUSD atm is the new higher low that’s started to form today (needs confirmation) after the minor trend break. For this to confirm we would want to see a positive close from buyers today. This could set up a swing in momentum back to buyers, which could set up a new move to test .6770. If buyers could break that point odds start to suggest a new short-term uptrend is underway.
Overall buyers need to remain cautious as price remains under two main downtrends. This week could also heat up on the data and news front for the AUDUSD with FED minutes early Thursday morning and U.S. CPI data due late Thursday night. As mentioned, Thursday also see’s a resumption of trade talks between the U.S. and China.