AUDUSD moves toward swing lows from September/October 2020

Swing lows come in at 0.6991 to 0.7005

The AUD is the weakest currencies on the day, and the pair is pushing to a new 2021 low and moves toward the swing lows from October in September 2020.  Those levels come in between 0.6991 and 0.7005. The low price just reached 0.7013. A move below that floor area would increase the bearish bias for the pair.

Sticking to the daily chart, the 38.2% retracement of the move up from the March 2020 low (not shown) comes in at 0.70525. That is the new risk level on that chart. Stay below and the sellers remain in firm control. The low price from earlier in the week at 0.7062 is also a close risk defining level now.

PS the Reserve Bank of Australia is expected to keep rates unchanged at 0.10% and bond purchases at AUD 4B through mid February. The expectations are that they would also continue to guide toward ”hikes are likely to take some time”. The rate decision will be at 10:30 PM ET on Monday/0230 GMT Tuesday)

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Technical Analysis

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