The AUDUSD broke below a key swing area floor between 0.7100 and 0.7113 during yesterday’s trade, extending to a low of 0.7079 before finding support buyers. However, the downside momentum could not be sustained. The pair rebounded back into the former support zone and closed the day within that swing area, signaling that sellers were losing some short-term control.
In today’s Asian-Pacific session, the pair initially moved lower again, but once more failed to generate enough momentum to retest yesterday’s low at 0.7079. That failure helped spark a corrective rebound, with the price climbing above the swing area and reaching a high near 0.7134 where sellers leaned against the rally. The subsequent dip held support near the upper end of the swing area at 0.7113, and buyers have since pushed the pair back toward the 0.7134 resistance level.
A move above 0.7134 would shift the focus toward the falling 100-hour moving average at 0.7149. That moving average was broken decisively last Thursday near 0.7240, helping fuel the broader decline that eventually led to yesterday’s low at 0.7079. If buyers can break back above the 100-hour moving average, it would give the bulls more confidence and potentially add upside momentum. On the downside, if sellers once again lean against resistance, traders will look back toward the key swing area between 0.7100 and 0.7113 as an important support zone and short-term barometer for bias
