AUDUSD fell sharply yesterday, falling below the key ceiling/floor area between 0.7221 and 0.7227. This bearish breakout helped push the pair lower towards the next swing zone support between 0.7193 and 0.7200. In early trade in the Asia-Pacific region, buyers held on to that support area for several hours, which helped stabilize the price before the pair returned to the upside.
During the European session, the AUDUSD regained the previous swing zone between 0.7221 and 0.7227, and more importantly, the price managed to stay above that zone in North American trading. This move back above the old resistance area changes the short-term bias back in favor of buyers, with the pair now trading near 0.7240.
The next upside targets are the highs from earlier in the week. Yesterday’s highest price reached 0.7263, while Wednesday’s highest price extended to 0.7277. Remember from yesterday’s post that the 0.7277 area is a major resistance area dating back to 2022, where the previous swing highs came between 0.7265 and 0.7283. Earlier this week, sellers leaned into this historical ceiling with risks identified and limited, which helped halt the rally within that resistance group.
Currently, buyers are back in more control while the price remains above the 0.7221-0.7227 area. A break above the key resistance level of 0.7283 would open the door for more bullish momentum and increase the bullish bias going forward.
