The AUDUSD has been trading up and down over the last week or so of trading. The low price last Friday and again earlier today, held support against a swing area that goes back to January in the 0.6635 – 0.6648 area. The recent lows stalled near the highs of that swing area indicative of an underlying bias to buy.
Having said that, there is overhead resistance starting at the 61.8% retracement at 0.66759 and extending to 0.6690. The price also moved above that area both last week and on Monday but failed on each attempt above that area.
So going forward, if the price were able to get and stay above 0.6690, look for a break of the highs from last week and this week and for continued momentum up to 0.6728 – 0.6738.
Conversely, if the floor area down to 0.6635 is broken out expect buyers to be disappointed and look to exit long positions at least in the short/medium term.
This article was written by Greg Michalowski at www.forexlive.com. Source