AUDUSD corrects towards key resistance level as sellers remain in control

The AUDUSD moved lower for the 4th consecutive day. In the process, the price will down toward its 50% midpoint of the move up from the December low. A level comes at 0.66975. Low price for the day reached just above the 0.6700 level at 0.6701 and bounced.

That bounce moved back up to retest the broken 38.2% retracement of 0.6738. It also was near the high of a swing area between 0.6727 and 0.6738. Holding below those levels, kept the sellers more control. The 0.67382 level will be eyed in the new trading day as the key barometer for both buyers and sellers in the short term. Stay below and the sellers have the go-ahead to push down below the 50% midpoint at 0.66975 toward other swing levels and retracement levels starting with 0.6689, 0.6676, and then the 61.8% retracement at 0.66567.

Move back above the broken 38.2% retracement at 0.67382, and I think the sellers get disappointed and push the price back to the upside.

We are in day to all the new trading year. The trends have been more of a reversal variety in most of the markets. Stocks are sharply lower especially the Nasdaq index which currently trades their session wasn’t down over 1.11%. Yields are a little lower today but the 10-year yield did move up toward the 4% level before backing off. The US dollar is higher as well.

This article was written by Greg Michalowski at Source