The AUDUSD rallied strongly yesterday, lifted by renewed optimism surrounding a possible US-China commerce decision. That momentum initially carried over into at this time’s Asian session, with the pair extending modestly larger earlier than stalling and turning decrease forward of the European open.
The early pullback, nonetheless, was well-contained, as patrons stepped in simply above the 38.2% retracement of the decline from the September excessive at 0.65418—a stage that has now confirmed its technical significance. Notably, the market additionally revered this similar retracement throughout yesterday’s temporary corrective dip, reinforcing its position as a key pivot assist zone for merchants.
Holding that stage gave patrons the boldness to reassert management, and as soon as the pair pushed above the sooner session excessive close to 0.6564, momentum accelerated, driving the AUDUSD by the 50% midpoint of the identical September-to-October transfer decrease at 0.65733. That midpoint now acts as near-term assist, adopted by secondary backing at 0.6564, the previous breakout space.
For bullish merchants, these zones outline threat and can be watched intently for indicators of renewed shopping for curiosity on any dips. So long as the pair holds above them, the upside door stays open for a possible run towards the subsequent retracement goal close to 0.66049.
The video above breaks down these technical guideposts in larger element and explains how patrons have used Fibonacci ranges to map the present restoration part.
