Something about the 0.73846 level is attracting some profit taking buying.
The AUDUSD has had an up-and-down day today. On the US employment news today, the price dipped lower and in the process moved below the 0.73846 level (see the 5 minute chart below), but bounced quickly. What is the significance of that level?
Looking at the daily chart below, the 0.73846 is the 61.8% of the move up from the December low (see chart below). Yesterday, the price stalled within pips of that retracement line (it was also near the bottom trend line on the 5-minute chart at red circle 7).
Today, the price has been below that level on 3 separate times. However, the last two were quickly reversed AND the last dip stalled just above that key line (see 5-minute chart above).
Are buyers buying dips for a corrective move? It sure seems that way. The risk can be defined and limited against that level.
On the topside, if the pair is to correct more significantly, the pair needs to get and stay above the 0.74147 level. That is the high for the day and also the 50% of the move down from the spike high from Wednesday (see top of yellow area on the 5- minute chart above). That level should be a tough nut to crack though. Be aware. However, if it gets above, there is room to roam with the 0.7439 being the 38.2% of the weeks trading range as the next corrective target (see hourly chart below). That is the early road map for the AUDUSD.
