AUDUSD is moving above a rising trend line that’s been holding on its longer-term time frames, and it looks like a pullback to this support area is due.

The Fibonacci retracement tool shows that price is already finding buyers at the 50% level that lines up with the 100 SMA dynamic inflection point, but a larger correction could reach the 61.8% Fib closer to the trend line.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support levels are more likely to hold than to break. If the Fibs are able to keep losses in check, AUDUSD could resume the climb to the swing high at the .7550 minor psychological mark.

Stochastic is already heading higher to show that buyers are taking over while sellers take a break. RSI is also pulling up without reaching the oversold region, indicating that buyers are eager to return. Both oscillators have plenty of room to climb before indicating overbought conditions, so AUDUSD could follow suit.

Earlier on, Australia reported a pickup in manufacturing and services activity based on the flash PMIs for October. These leading indicators suggest that economic performance could advance in the coming months.

The US has yet to print its own flash manufacturing and services PMIs later today, and analysts are expecting mixed results. The manufacturing PMI could dip from 60.7 to 60.5 to reflect a slightly slower pace of expansion while the services PMI might rise from 54.9 to 55.3 to signal stronger growth.

Better than expected results might prove bullish for the dollar, enough to spur a break below AUDUSD’s trend line support. On the other hand, weak data could allow the Aussie to maintain the upper hand and resume its climb.

Keep in mind, however, that risk-taking has been shaky in the past sessions as traders focus on Evergrande risks, the energy crunch, and the threat of stagflation.