The AUD/USD moved lower yesterday, testing a key swing area between 0.6433 and 0.6442. Selling pressure eased as the price reached the upper boundary of this zone, where buyers stepped in and the pair rebounded into the close. This recovery pushed the price into a higher swing area between 0.6471 and 0.64817, but the upside momentum stalled there.
In today’s trading, the pair initially moved higher but quickly reversed as sellers re-entered the market, supported by a larger-than-expected current account deficit and renewed USD strength. The decline has pushed the price away from the higher swing area, shifting focus back to the lower swing zone between 0.6433 and 0.6442.
A break below this lower swing area could pave the way for a test of the November low, with further downside targets at the April low of 0.6363 and the August low of 0.6347—the year’s lowest levels.
On the upside, buyers would need to reclaim 0.64817 to regain some confidence, but even then, more work would be required to shift the broader momentum away from the sellers. For now, the bias remains bearish unless the buyers can clear key resistance levels and sustain a move higher.
——————————————————
AUD/USD Technical Analysis
The AUD/USD pair declined yesterday, testing a key swing area between 0.6433 and 0.6442. Selling pressure eased as the price reached the upper boundary of this zone.
Key Levels:
-
Support:
-
Swing area: 0.6433-0.6442
-
November low: 0.6383 (potential target)
-
April low: 0.6363 (potential target)
-
August low: 0.6347 (year’s lowest level, potential target)
-
Resistance:
-
Higher swing area: 0.6471-0.64817
-
Key level: 0.64817 (buyers need to reclaim this level to regain confidence)
Market Bias:
The bias remains bearish unless the buyers can clear key resistance levels and sustain a move higher.
Trading Outlook:
A break below the lower swing area (0.6433-0.6442) could pave the way for a test of the November low and further downside targets. Buyers need to reclaim 0.64817 to regain some confidence, but more work would be required to shift the broader momentum away from the sellers.
This article was written by Greg Michalowski at www.forexlive.com.
Source link
