Last week, AUDUSD took a downward turn, breaching the boundaries of a pre-established “red box” with a lower range of 0.6564 – 0.6572. This deviation from the swing area appeared to fortify the confidence of sellers, culminating in a further dip to a low of 0.64898 last Thursday.
Although a slight correction has been witnessed since then, in today’s trading the high of 0.65587 still fell short of revisiting the aforementioned swing area between 0.6564 and 0.65726. The current trading price is hovering at around 0.6513.
As we look forward, if the price manages to stay beneath the swing area denoted by the lower limit of the “red box”, the sellers remain in control and the attention is likely to shift towards possible targets on the downside. However, if the price escalates back into the “red box” and surpasses the swing area, this could lead to disappointment among sellers and potentially instigate a shift from selling to buying due to the unsuccessful downward break.
AUDUSD falls from “red box”