AUDUSD makes a new high & moves above swing area in the process. Looks toward retracement

The AUDUSD is displaying a notable upward push, marking fresh highs and surpassing a crucial swing zone situated between 0.63269 and 0.6334.

This breakthrough has shifted traders’ focus towards the 38.2% retracement level from last week’s high, positioned at 0.63467. If the price manages to surpass this level, the next notable resistance lies at a significant confluence of technical factors:

  • The 100 and 200-hour moving averages along with the
  • 50% midpoint of the aforementioned downward move, approximately around 0.6365.

This confluence of three separate technical targets creates a prominent resistance zone.

Conversely, a drop below the low of the swing area (see red numbered circles) at 0.63269 would hinder the bullish momentum in the short term, and should swing buyers to sellers in the short term.

This article was written by Greg Michalowski at Source