AUDUSD fails at key resistance, sellers regain management beneath zero.6390 to zero.6407

In unison

The AUDUSD rally yesterday ran right into a agency wall of resistance, as worth motion stalled inside a key swing space between zero.64278 and zero.6444. Notably, this zone additionally consists of the 50% retracement of the decline from the October 1, 2024 excessive, including to its technical significance. The excessive worth reached zero.6437 earlier than rotating decrease.

In early Asian-Pacific buying and selling right now, the AUDUSD moved again larger and briefly made a brand new excessive at zero.6439, however as soon as once more failed to interrupt by means of the highest of the swing zone at zero.6444 (see pink numbered circles). That failure set the stage for a draw back reversal that has gained traction by means of the European and early U.S. periods.

The pair has since fallen again beneath the February 20 excessive at zero.6407 and the swing stage at zero.6390—a stage that had acted as resistance in latest weeks (see inexperienced circles on chart). Yesterday, the worth broke above that stage. The shortcoming to carry above zero.6390 is shifting the bias again in favor of sellers.

At present, worth is holding beneath zero.6390 at zero.6386. If sellers can preserve the pair below the zero.6390 to zero.6407 space now, the door opens for a corrective push towards the subsequent swing space assist between zero.6326 and zero.63406. That zone represents a cluster of prior lows and highs that will entice shopping for curiosity once more.

Sellers are making a play. Can they preserve the draw back corrective probing going?

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



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