The AUDUSD remains under seller control, but a critical support zone between 0.6334 and 0.6363 is currently being tested. This area has acted as a significant floor on the daily chart since November 2023.
Recent Price Action
- Earlier this week, the price stalled at 0.6336, just above the lower boundary of the swing area opn the daily chart (see green numbered circles on the chart below), before rebounding.
- During yesterday’s trade, the pair rallied to 0.6400, breaking above the falling 100-hour moving average but failing to sustain momentum at the 200-hour moving average (near 0.6429 yesterday – see green line on the chart below). Sellers leaned against this level, pushing the price back down by the session close.
- In today’s trading, the price attempted to move higher during the London session but fell short of the 100-hour moving average, now at 0.6389.
Key Levels to Watch
- Upside Targets for Buyers:
- 0.6389 (100-hour moving average): A break above this level is the minimum requirement for buyers to gain some control.
- 0.6411 (200-hour moving average): A move above this level would signal a potential shift in momentum toward buyers.
- Downside Targets for Sellers:
- 0.6334 (Swing Area Support): A break below this level would reinforce the bearish bias, likely triggering further downside exploration.
Summary
- Above 0.6389: Buyers start to challenge the bearish trend, with further upside potential toward 0.6411.
- Below 0.6334: Sellers cement their control, opening the door for continued downside momentum.
For now, sellers remain firmly in control unless buyers can reclaim key moving averages. The immediate focus remains on whether the critical swing area between 0.6334 and 0.6363 holds or breaks.
This article was written by Greg Michalowski at www.forexlive.com.
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