The AUDUSD this week fell below the 2022 low at 0.6966. The price also fell below the 2021 low at 0.6992.
Those breaks of those key levels on the weekly chart above, led to a run down toward another swing area between 0.6809 and 0.6832.. That area will now be eyed as a key resistance level on any rally.
The low price this week reached 0.68284 before bouncing into the close yesterday and into trading today.
Looking at the hourly chart below, the move to the upside today has now taken the pair back above the swing lows from May 9, and above the 38.2% retracement of the move down from Wednesday’s high at 0.69143.
The next target comes against the 100 hour moving average at 0.69281. The high price just reached 0.6922 around 6 pips short of that falling 100 hour moving average. It would take a move above that level – and staying above that level – to give the buyers more confidence.
Recall on Wednesday during the up and down price action off the CPI data, the price did move above the 100 hour moving average only to fail on that break higher.
The best case scenario for the buyers in the short-term would be to hold support near 0.6910 low from Wednesday (maybe above 0.6900 since the low is near the 38.2% retracement at 0.6914). Stay above that area, would give buyers a springboard for a potential move above the 100 hour moving average before the week and. A break above would look toward the 50% of the move down from Wednesday at 0.69408 as the next target. After that, traders will be looking toward the low from earlier this year at 0.6966 (see weekly chart) followed by the swing low from 2021 at 0.6992