Yesterday in the Asia/Pacific session, the price of the AUDUSD moved higher after the Aussie CPI data came in a touch higher than expectations at 3.5% versus 3.4% (YoY). That took the price of the AUDUSD above the high price from July and earlier this week at 0.67978.
However after reaching 0.6812 on the momentum from the break,, but falling short of the next target at 0.6818 (61.8% retracement of the move down from the 2023 high to the 2023 low), buyers turned to sellers, and pushed the price back below the 0.6798 level. The break failed.
As the trading day progressed yesterday, the price wandered to the downside reaching a low of 0.67638. That was just short of the 0.67604 swing level target which was a swing high going back to July, a swing high going back to August, and a swing low from earlier this. Week (see red numbered circles).
If you watched my videos on Tuesday and Wednesday, the technical story was get below 0.6760, or get above 0.67978.That is the same story for today (wash, rinse, and repeat).
At some point, there is going to be a break again, and it won’t be like the one we saw yesterday where it breaks and quickly reverses. So the patient. Be aware. And look for the next break with momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source