AUDUSD moves down to test a swing area going back to 2019/2020

AUDUSD

AUDUSD trades to targeted swing area support

The AUDUSD tumbled lower today and in the process has moved down toward a key swing area between 0.6809 and 0.6832 (see red numbered circles on the daily chart above). The low for the day reached 0.6824 before bouncing. Risk focused traders have put a toe in the water. The price is currently at 0.6847 modestly off the high of that swing area.

Going forward, it would take a move below the swing area to give sellers more control (and likely see stop selling).

What would hurt the sellers now?

Staying on the daily chart, the AUDUSD fell below the December 2021 and the January 2022 lows on Monday, but did bounce above those levels on Tuesday and yesterday (helped by the volatility from the CPI data).

However, the high yesterday did find sellers near the broken 38.2% at 0.70537 and resumed the downside momentum. The price of the AUDUSD closed below the aforementioned lows both on Tuesday and Wednesday giving the sellers some downside control.

Today, the high price stalled ahead of the lowest low from January at 0.6966 (the high reached 0.69526 today).

If the price can stay below the 0.6966 level, the sellers remain in play and with the stronger hand. A move back above – and then above the December low at 0.6990 – would spoil the bearish party and give the sellers on the break lower, some cause for pause..

Technical Analysis

Articles You May Like

New record: Bitcoin surpasses $1.6 trillion market cap
Gender? Economy? Experts weigh in on which factor is most likely to flip the presidential race
Weakness continues in crude oil prices. Key factors to watch out for
BoJ Minutes: Central bank will continue rate hikes if economic and price forecasts meet
DWF Labs partners with UCLA for tokenized securities education

Leave a Reply

Your email address will not be published. Required fields are marked *