November 27, 2022

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AUDUSD below swing level going back to Nov/Dec 2020. Can the price stay below the level?

2 min read

The 0.7338 level was resistance/ support back in November/December before moving higher.

The AUDUSD is lower on the day, but is also back above the low from yesterday’s trading.  

The 0.7338 level was resistance/ support back in November/December before moving higher.

Having said that, looking at the daily chart, the price remains below a swing area going back to November/December 2020. During that time, the price initially used 0.73383 as a resistance ceiling (see red numbered circles 1, 2 and 3), and then used the level as support after breaking above (see red numbered circles 4 and 5).   The price based against that level and moved higher to the end of February high price of 0.80065. 

Yesterday, the price dipped below the 0.73383 level, but could not close below that level. Today the price has traded above and below the level in the early Asian session before moving to a new low for the year at 0.72992 (call at 0.7300). 

The current price is trading at 0.7324. That remains below the 0.73383 level keeping the sellers in firm control.  For traders, a move back above should see more corrective upside probing on the back of the 2nd day with a failed break.  Watch that level. 

Drilling to the hourly chart below, the London/New York session has so far been able to stay below that 0.73383 level. The high price reached 0.7334 at its peak in the London morning session and 0.73322 in the NY session.   Once again, getting above would likely disappoint the sellers and lead to more upside corrective probing . The downward sloping trend line cuts across at 0.7350 (and moving lower). 

Move above that level, and traders will look toward the 38.2% retracement of the move down from the high last Thursday at 0.73703 as the next upside target.  

AUDUSD on the hourly chart remains below the 0.7338 level

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