AUDUSD breaks lower and now tests key lows from June/July

The AUDUSD moved sharply to the downside after the Reserve Bank of Australia Rates unchanged for the 2nd consecutive month. They instead are looking for past rate hikes to slow growth and in turn slow inflation. Time will tell. The central bank remains data-dependent.

Technically, the price tumbled below its 100-day moving average at 0.66918. The momentum move down has pushed to price down to test the June and July swing lows which bottomed between 0.65946 and 0.6603 (see red numbered circles on the hourly chart above).

A break below those levels opens the door for further downside momentum.

Looking at the daily chart below, another swing area comes in between 0.6544 and 0.6584 (see green numbered circles on the daily chart below). That area is the low of what is the value area going back to February 2023 (see red box on the daily chart below). Most of the price action since February has been between 0.65448 and 0.6818. There have been extremes to the upside and downside (see red shaded areas on the chart below), but most of price action is within the red box.

Close resistance now comes between 0.6636 and 0.6652 (see green number circles on the hourly chart above). Stay below is more bearish.

Watch the above video for the full technical view, including the bias, risk, and targets. You can find all my technical videos on our YouTube channel HERE.

This article was written by Greg Michalowski at Source