The AUDUSD fell on Friday to lowest level since the end of May 2020, and in the process moved into a swing area between 0.6657 and 0.66809. The low price reached 0.66692 and bounced into the close.
In trading today, the price initially moved higher of 0.6733. That took the price above a swing area on the hourly chart between 0.66988 and 0.67168.
However, momentum could not be sustained and the price rotated back to the downside. That move returned back to the swing area on the weekly chart, but could not break below (the low reached 0.66717).
The last 4 or so hours has seen a rebound back to the upside and into the aforementioned swing area on the hourly chart. The falling 100 hour moving average is also coming into focus and into play at 0.67206.
It would now take a move above that moving average line and staying above togive the buyers more hope and short term control. Stay below and the sellers maintain full control.
Overall, there is reason to buy from the weekly. However, there is work to do. Get and stay above the 100 hour MA would be the next step if the pair is to continue the correction higher.
