The AUDUSD has been trending steadily increased over the previous few weeks, with consumers exhibiting a constant urge for food on dips and pushing the pair by way of a sequence of technical layers. The rally started from a decrease swing space between 0.6407 and 0.6424, and has now prolonged all the way in which up towards a main higher swing zone between 0.66247 and 0.6635. The excessive for the day sits just under that resistance band.
This higher space is necessary — not solely as a result of it caps the present transfer, however due to its historic significance. Since late Could, the AUDUSD has spent the majority of its time oscillating inside this very vary. Other than one failed draw back break in June and one failed upside break in September, worth has persistently revered this zone. When the market repeatedly reacts to a degree throughout a number of months, merchants take discover. It turns into a pure battleground for each side.
For consumers who’ve been “on board the pattern prepare” over the previous few weeks, this zone represents the subsequent large hurdle. To maintain momentum alive, they should drive a clear break above 0.6635 and maintain above it. A profitable push would open the door towards the September excessive close to 0.67064 as the subsequent significant upside goal.
Alternatively, sellers might view this identical space as a horny lean level. The chance is well-defined, the extent has labored repeatedly prior to now, and the upside may be capped by putting stops simply above 0.6635. If historical past repeats itself, this resistance band may as soon as once more halt the advance.
If resistance does maintain, the primary intraday degree to observe on the draw back is 0.6597. A break beneath that degree would give sellers extra confidence {that a} short-term prime is forming and that the upside try has stalled.
