July 08, 2024 at 04:30PM
The AUDUSD has been trading up and down today after last week’s move higher. The run higher today extended up to a new high going back to January. That high stalled right near the January 4 swing high before its rotation lower (at that time). The subsequent fall from the January 4 high, took 3/4 months, and culminated at the low for the year at 0.63617.
Since bottoming in mid April, the price has been building higher and higher, with today’s high stalling rate at the high price from early January at 0.67604. That lap down and up has been completed.
The correction lower moved the price between a swing area and 0.67278 to 0.6738. That swing areas (see red numbered circles on the chart below ) is close support to start the new trading week. A move below that level would have traders targeting 0.6708-13 level which if broken, would likely lead to even more downside probing.
So sellers came in where they were expected to come in today. The overriding question is “Is it just a temporary pause? or “is the selling something more substantial?”.
Get below 0.67278 and then 0.67087-13 would give the sellers more confidence.
This article was written by Greg Michalowski at www.forexlive.com.
