February 3, 2023

Forex Solution

Learn To Trade Forex

AUDUSD rebounds today after testing a July low

2 min read

Corrects back above swing area between 0.7327 and 0.7336 too

The AUDUSD moved lower in the early Asian session today and in the process tested the swing low from July 28 near 0.73163.  Buyers leaned against that low, and pushed price back higher. 

Corrects back above swing area between 0.7327 and 0.7336 too

A little higher between 0.73276 and 0.73364, was another swing area (see green numbered circles). There had been a number of swing lows in that area going back to July 26 and more recently yesterday.  Getting above that area, reestablishes the area as support going forward for buyers looking for the AUDUSD to restart a move to the upside.  

If the buyers are to take more control, traders would not only want to see  the swing area below (yellow area), but also see the price moved back above the 50% midpoint of the range since July 21 at 0.73573.  After that, the pair would need to get back above the falling 100 hour moving average at 0.73655 and the 200 hour moving average at 0.7372. 

The dip buyers are now out of the woods, but they did find support near a swing low, and extend back above a swing area. The pair is back in the lower portion of the up and down trading range seen since July 22.  

However, if the pair is to work its way back toward the upper extreme now that the lower one was tested and found some risk focused buyers, the 50% midpoint and MAs need to be broken. 

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