Price bounces above swing area too
The AUDUSD fell sharply (dollar higher) following the lead of the stock market.
The price decline started to move to the downside after breaking below the 100 and 200 hour moving averages up at 0.77261 and 0.77208. Momentum selling below those levels got the ball rolling.
The selling than accelerated with the fall below the low from yesterday at 0.7668 and other swing lows down to 0.76584 (see yellow area), pushing the price down to a low for the day at 0.7643. That was just above the 2020 low going back to January 4 at 0.76414.
The price has since bounce back and moved back above the aforementioned swing area (high at 0.7669). The 38.2% retracement of the sharp move to the downside comes in at 0.76888. Other resistance comes in near the 50% of the day is range at 0.7703. Traders will be watching those levels for clues. If sellers show up, getting back below the 0.7658 to 0.7669 are would be the next downside step, followed by the 0.76414 2021 low.
Given the sharp move to the downside, I give the sellers the benefit of the doubt despite the bounce off the 2021 low. However start move above the 0.7688 level and get above the 0.7703 level would ruin that idea.
Stay below still requires the sellers to break out of the up and down range for 2021 starting with the break of 0.76584 to 0.7669 level.
