The price of the AUDUSD is trading up and down today, but the highs have been able to stay below a swing area between 0.6911 and 0.69196. Also in play is the 50% midpoint of the move up from the July 14 low. That level comes in at 0.69085. The current prices trading at 0.6883 near the lows for the day after retesting the low end of the swing area and the 50% retracement in the early US trading.
Admittedly, going back in time there have been a number failed break’s below this swing area. Back on August 3rd, and again on August 5th and 8th, the price fell below the swing area only to bounce back. Yesterday the price also fell below the level and could not maintain downside momentum.
So today’s price action is going to be key. So far with the highs finding sellers against the high of the swing area, the sellers are staying in control. The downside is still favored.
On the downside, the swing low from August 5 reached 0.6869.. That ios the next target to get to target to get to and through. Below that look toward the 61.8% retracement at 0.68548 area. That is between a swing area between 0.6852 and 0.6858.
US stocks and European stocks are trading to new session lows. That is leading to risk off sentiment in the pair. The NASDAQ index is now down over 200 points or -1.64%. The Dow industrial average is down 274 points or -0.81% and the S&P is down -48 points -1.11%