The AUDUSD rallied into the year end but is correcting lower today
The AUDUSD rallied into the end of the year. Eight of the last nine trading days were higher. Looking at the daily chart below, that move extended above the 50% retracement of the 2019 trading range at 0.69829 (more bullish).
Today, the price has moved lower and in the process dipped just below that 50% level to a low price of 0.69824. Buyers leaned and the price has bounced modestly. The pair currently trades at 0.6992.
A move back below the 50% retracement level should tilt the bias more to the downside.
Drilling to the hourly chart below, at the session lows the pair was also testing an upward sloping trendline and the rising 100 hour moving average (blue in the chart below). Both were around the 0.6983 level at the session lows. They are currently a little bit higher at 0.6985 area.
With the 50% retracement from the daily chart and the 100 hour moving average and upward sloping trendline all close together at the 0.69824 to 0.69853 area, that area becomes a risk defining level for both buyers and sellers.
Stay above and the trend to the upside can be reestablished. Move below and we should see further corrective probing to the downside.