The AUDUSD hit a new low today, entering a key swing zone between 0.6334 and 0.6363 on the daily chart. This zone has been important since November 2023, characterized by three distinct phases. The price reached 0.6336, just above the lower limit of this floor (see circles with red numbers on the chart below).
Buyers stepped in to stop the decline, leading to some recovery. In the reversal, the short price exceeded the high of the swing area, reaching a correction level at 0.63765. Since then, price action has consolidated between 0.6354 and 0.6372, crossing the upper limit of the swing area at 0.6363.
What next?
For the corrective movement to gain traction, the price must break and hold above the 0.6363 level. A sustained move could target the psychological resistance at 0.6400, a level that is reinforced by multiple highs and lows from last week and this week's trade (see circles with red numbers).
Beyond that, the 100-hourly moving average falling at 0.6406 will be a critical barrier. A break above this level would dampen the confidence of buyers and could force sellers to reconsider their positions.
On the other hand, a move below the 0.6363 level would be more volatile and a re-visit of the daily swing low would be targeted.
Key area for both buyers and sellers at 0.6363. Do the buyers or the sellers win?
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