The AUDUSD hit a new low today, dipping into a key swing area between 0.6334 and 0.6363 on the daily chart. This zone has been significant since November 2023, marked by three distinct lows. The price reached 0.6336, just above the lower boundary of this floor (see red numbered circles on the chart below).
Buyers stepped in to halt the decline, leading to a modest recovery. In the rebound, the price briefly surpassed the high of the swing area, reaching a corrective high at 0.63765. Since then, price action has consolidated between 0.6354 and 0.6372, straddling the upper boundary of the swing area at 0.6363.
What’s next?For the corrective move to gain traction, the price needs to break and hold above the 0.6363 level. Sustained momentum could target the psychological resistance at 0.6400, a level reinforced by multiple swing highs and lows from last week and this week’s trading (see red numbered circles).
Beyond that, the falling 100-hour moving average at 0.6406 becomes a crucial barrier. A break above this level would bolster buyer confidence and potentially force sellers to reconsider their positions.
Conversely, move below the 0.6363 level with more momentum and a revisit to the low of daily swing area would be targeted.
Key area for both buyers and sellers at 0.6363. Will the buyers or the sellers win?
This article was written by Greg Michalowski at www.forexlive.com.
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