AUDUSD comes off the boil and corrects lower today

The AUDUSD is coming off of the boil that saw the price move sharply to the upside over the last few trading days. That move to the upside saw the pair test the 61.8% retracement of the 2023 trading range at 0.68899. The price also moved up to test the high price from June 2023 at 0.68989. The high price today reached 0.6894 between those 2 levels and could not go any further. That has led to buyers turning to sellers as we head into the weekend.

What next?

Looking at the hourly chart below, going back to swing highs on June 14 and swing low on June 19 (see red numbered circles on the chart below), the price used the 0.6835 level as a swing level.

The current price is moving toward that level.

Move below and we could see additional probing down toward the 38.2% retracement of the move up from Wednesday’s low. That level comes in at 0.68123. Below that is some support near 0.6806 as well.

Conversely, find support buyers against the 0.6835 level, and this corrective move lower is a modest correction in what is a trending market. Remember trends or fast, directional and tend to go farther than what traders think. A correction down to this level and a move back to the upside would keep the pair firmly in the “trend-up” mode, with the June – and now July highs – the upside target to get to, and through.

Short-term barometer at 0.6835. We will see what happens at the level as we head toward the weekend.

This article was written by Greg Michalowski at Source