AUDUSD retracing the declines after finding support near old ceiling from March

The AUDUSD AUD/USD The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar The AUD/USD is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one Australian dollar. For example, when the AUD/USD is trading at 0.7500, it means 1 Australian dollar is equivalent to 0.75 US dollars. The Australian dollar (AUD) is the world’s fifth most traded currency, whilst the US Dollar Read this Term moved lower with the USD buying and "risk off" sentiment.

The move lower saw the pair move to a swing area between 0.7420 to 0.7429. That area was a ceiling going back to March 7 to March 21 (see green numbered circles).

The push higher in the AUDUSD has now seen the price move through a swing area between 0.7449 to 0.7455 and looks toward a floor that held the price support from March 24 to yesterday (with one quick dip below on March 29). That area comes between 0.7465 to 0.74712. That area is also home to the 38.2% of the move up from the March 15 low at 0.74712.

The current price is trading at 0.7456.

For the week, the pair did run up to the highest level since June 16 on Tuesday. That move came after the RBA shifted toward a June tightening and tweaked bias language in their statement (see post here).

That news took the AUDUSD price above the 61.8% of the move down from the 2021 high at 0.76094. That run higher was also helped technically by the move above the swing high from October 28 at 0.7555. However, the price was back below that level on Wednesday and again lower yesterday and today. The move higher on the RBA was completely erased and then some.

Now the bounce is hinting the downside may have been reached. Much will depend on the aforementioned resistance up to 0.74712. Get above that level and we could see more covering from the shorts on the reversal today.