AUDUSD corrects lower but keeps its bullish bias. What next technically?
The AUDUSD based last week just ahead of its 100-day moving average and the 50% retracement near 0.7070. Holding that key support gave buyers the go-ahead to push higher.
The first move to the upside last week revisited the August 17 high near 0.7129 before the pair consolidated. The second push was supported by the rising 100-hour moving average, and a break to new weekly highs was helped by sharply higher commodity prices, including gold. The AUDUSD ultimately reached 0.7180, stopping short of the next key target area between 0.71936 and 0.7200.
Today, the price action has turned more corrective, with the AUDUSD trading lower amid an up-and-down session. However, the trading range is only around 23 pips, suggesting sellers have yet to take meaningful control.
What is somewhat notable is that the AUDUSD is lower despite gold continuing to build on last week’s strong gains. Gold is up another $70, or 1.51%, at $4,672, after reaching a high of $4,680.92. That puts gold at its highest level since mid-May, with the next major upside target at the 50% retracement of the decline from the 2026 high at $4,768.
Technically, the AUDUSD’s bullish bias remains intact. The key support is defined by the August 17 high near 0.7129 and the rising 100-hour moving average at 0.71262. It would take a move below that area to give sellers some hope — and more control.
If the 100-hour moving average is broken, the next downside target would be the 200-hour moving average near 0.7103.
Until then, the price may be correcting, and the inability to extend higher despite gold’s continued surge is something buyers will want to monitor. Nevertheless, the sellers have not taken back control. The buyers still hold the stronger technical hand as long as the price remains above the 100-hour moving average.
This article was written by Greg Michalowski at investinglive.com.