The AUDUSD is down for the 5th consecutive day. That move has taken the price from from a high of 0.72352 a low today of 0.6965 or 267 pips or -3.7%.
Like the other currencies today, the initial move today was in the USD lower direction (the AUDUSD higher). That move higher initially based late yesterday within a swing area between 0.6902 and 0.69168. The subsequent move to the upside took the price through a swing area between 0.6949 and 0.6962. The high price today reached 0.6970 before USD buying kicked in and the price started to move back to the downside.
The move lower took the price him below the aforementioned swing area between 0.6902 and 0.69168 and down toward a lower swing area between 0.6866 and 0.68737. That swing area is above the lower extreme from May 12 at 0.68286. That low is also the lowest low going back to June 2020.
So far, the aforementioned swing area down to 0.6866 is finding some stall. The last 3 hourly bars have lows within that area. The current price is trading at 0.6871. Although traders are knocking on that door, they have been able to break through it just yet as the buyers and sellers are battling it out against the risk defining area.
Should support hold and the price start to trade more comfortably above 0.68737, getting back above the 0.69168 level would give the buyers some added comfort th him him at the low may be in place. Absent that, and sellers are still in firm control.
Taking a broader look on the daily chart, on a break to new lows, the 50% midpoint of the trading range since the 2020 low comes in at 0.67638. That would be the next downside target followed by a swing area between 0.6670 and 0.6717.
