Rebounds off the lowest level for the year (and lowest level going back to December 2020)
The AUDUSD traded to a new 2021 year a low at 0.74435 soon after the jobs report, but quickly rebounded higher. In the process, the price has moved above a trend line trendline (currently at 0.7477), and also above a swing area going back to June 18/June 21, and yesterday at 0.74761. The current price is moving to test the 0.7500 level (currently at 0.7498).
A move above 0.7500 would next target a cluster of resistance between 0.7506 and 0.75121. That resistance target includes:
- The 100 hour moving average at 0.7508
- The 38.2% retracement of the move down from the June 25 high at 0.75094
- A swing area between 0.7506 and 0.75121
A move above that area is needed to increase the bullish bias. Failure to do that and the rebound off the 2021 low is a plain-vanilla correction.