Watch 0.7242.

The AUDUSD has been trading up and down as the pair consolidates the gains seen this week.

The high price yesterday reached 0.72885. The high price today reached 0.7287.  That was a clue that buyers and sellers were leveling out.  The recent price action has seen the price moved below the swing hi going back to October 9 at 0.72423. However momentum has slowed. There has been a modest bounce. The current price trades around 0.7253.

It would take a move with more momentum below the 0.72423 level to solicit more selling. The high price from Wednesday reached 0.7221. That would be the next downside target. Below that traders would look toward the 0.72019 to 0.72083 area (see green numbered circles)

Stocks are bouncing around. The major indices are still lower but off the lowest levels. The S&P index reached 3484.34. It is currently trading back at 3501. The NASDAQ index moved down to 11737.13. It is currently trading at 11798.52.  As risk flows go, so to does the AUDUSD (at times).   It would likely take some selling pressure to push the AUDUSD back below the 0.72423 level.

For bank trade ideas, check out eFX Plus



Source link