The AUDUSD pair has reached a new daily high and is currently trading at its highest level since July 27. The price has just touched 0.6794, indicating a significant upward momentum.
On the daily chart, this ascent brings the pair close to a crucial resistance zone, which lies between 0.6805 and 0.6820. Within this zone is the 61.8% Fibonacci retracement of the 2023 range, a key level derived from the decline from the high in February 2023. Surpassing this swing area and the Fibonacci level would reinforce the bullish perspective from a technical standpoint.
Conversely, for traders considering potential short positions, this resistance zone offers an opportunity. The area around 0.6820 can be used as a benchmark for limiting risk, especially for those looking to capitalize on a reversal at these higher levels.
On the other hand, a shift in market sentiment could be indicated by a move back below the 50% Fibonacci retracement level, which is currently at 0.67134. Falling below this level would signal increased confidence among sellers and could suggest a change in the market’s direction.
This article was written by Greg Michalowski at www.forexlive.com. Source