AUDUSD has extended higher and tests a key target near the 61.8% retracement

The AUDUSD has stretched higher today on the USD selling and risk on flows, and in the price is moving away from the 100 and 200 day MAs. Over the last 3-days, the price has been briefly moving above those MAs and backing off. The market has not been ready.

Finally, the price has been able to break more cleaning, and in the process, has moved up to test the 61.8% of the move down from the July high at 0.6626. Also near the level is the high of the swing area between 0.66189 and 0.66279.

Traders may look to the area as a level to lean against. The daily moving averages were tough to get through. Getting above and running into another key level, may stretch the buyers confidence. Also risk can be defined and limited against the level. If the price moves above, get out.

In the video, I outline the importance of the levels and the risks associated with them.

This article was written by Greg Michalowski at www.forexlive.com.