The AUDUSD is running to the downside but is now testing a key floor. What next?

December 04, 2024 at 02:42AM
The AUDUSD is running to the downside and is looking to test a key swing area support floor between 0.6433 and 0.64419. The price has bottomed in that area on 5 separate days over the last 15 trading days with the price finding buyers on each dip.

Needless to say, a break below the level would open the door for more downside probing with the lows from 2024 at 0.6347 and 0.6363 lows from August and April. A low going back to November 10, 2023 comes in at 0.6337.

First things first, the current swing area is key. Will the buyers hold for the 5th time and bounce the pair higher, or will the sellers push below and start the downside probing with the 2024 lows the targets?

In the video, I also take a look at the NZDUSD. it is testing a swing area down to 0.5859. A break below that level would open the door for sellers to push lower with the November lows at 0.5814 and 0.5797 as the next key downside targets.

The AUDUSD and the NZDUSD are the biggest movers today with the AUDUSD down -0.85% now and the NZDUSD extending lower and down -0.60%. Australia GDP came in weaker than expected kickstarting the downside. China’s PMI services came in weaker than expectations that is also contributing to the weakness.

This article was written by Greg Michalowski at www.forexlive.com.