AUDUSD eyes key resistance at zero.6390, Upside breakout potential

The AUDUSD has prolonged to a brand new session excessive, reaching zero.6388—a stage that aligns with swing highs from March 18 and April four. This space marks a key resistance ceiling. A sustained break above it’s wanted to strengthen the bullish bias.

Ought to consumers push via, the subsequent upside goal can be the excessive from February 21 at zero.6407, adopted by the 50% retracement of the decline from the October 1, 2024 excessive to the April low, which is available in at zero.64278.

That retracement stage additionally aligns carefully with the swing excessive from December 12 at zero.6428, including to its technical significance as a possible resistance zone.

If the ceiling close to zero.6390 holds as soon as once more, it may result in renewed draw back strain as consumers fail to interrupt larger. On the draw back, subsequent help comes between zero.6326 and zero.6340. Earlier within the Asian session, the value briefly dipped under that swing space, however rapidly snapped again above it—highlighting its significance as near-term help.

A break under that zone, together with a transfer beneath the damaged 38.2% retracement stage at zero.63065, would shift the main focus towards the 100-day transferring common at zero.6289 as a key draw back goal.

It’s value noting that over the previous month or so, the value has repeatedly damaged above the 100-day transferring common, solely to fail and retreat decrease. Every of these upside makes an attempt stalled close to the zero.6390 stage, reinforcing its position as a cussed resistance zone and the historic sample of failed bullish breaks above the 100-day MA.

This text was written by Emma Wang at www.ubaidahsan.com.



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