December 5, 2022

Forex Solution

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AUDUSD lower but waiting for a shove as it consolidates

2 min read

Trades between swing areas ahead of the June low (and low for the year).

The June low going back to June 18, was also the low for the year. That low came in at 0.7476.  Back on June 18 and June 21, that low level was re-tested on a number of hourly bars (see green numbered circles), before starting the correction higher. The swing high (off the low) peaked on Friday at 0.7616.

Trades between swing areas ahead of the June low (and low for the year).

This week the price has moved lower each day.   Today the change is a modest -12 pips so far. That move has taken the price to retest a swing low from June 22 at at 0.74935.  support buyers are leaning against that level.

On the move lower, the price was able to crack and stay mostly below a swing area between 0.7506 and 0.75121. That area above remains a close risk  level for shorts.

Overall, the last 8-9 trading hours have remained between that support below at 0.7493, and the resistance above at 0.7512.  The price currently trades at 0.7499.  

The narrow trading range between the swing areas suggests that traders are waiting for the next shove.  A shove lower will work toward the 2021 low at 0.7476. will below that level and we should see further downside momentum.

Conversely, a move back above 0.7512 would next target the high for the day (at 0.7527). Above that, and traders will focus on the falling 200 hour moving average currently at 0.75472 (green line in the chart above).

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