The AUDUSD tested the low from yesterday at 0.62849. The low came up a pip short of that low and bounced.
The high for the day was able to extend above the low from last week at 0.6331 on two separate 4-hour bars. However, momentum could not be sustained above the level and the price has since rotated back to the downside. The current 4-hour bar has stalled the high against 0.6331 level, giving sellers some ammunition to push lower.
Overall, the sellers had shot to get below the low from yesterday at session lows today, and came up one pip short. Buyers leaned. On the topside, the buyers also took the shot above the low from last week at 0.6331, and failed.
Going forward, if the buyers can get above 0.6331 level look for a rotation toward the low of the red box can find the trading pair at 0.63559.
Conversely, on the downside if the price can ultimately get below the double bottom at 0.63849, that would open up the downside potential.
This article was written by Greg Michalowski at www.forexlive.com. Source