AUDUSD looks to test recent up and down floor

Floor over the last 11 days comes in at 0.7453

The RBA kept rates unchanged, hedged about the tightening path (could be 2023 or 2024 but not likely in 2022).  They did stop targeting the April 2024 bond at 0.1% (expected). 

The pair has moved lower after technically breaking below its 100 and 200 hour moving averages at 0.75153 and 0.75033 respectively. The pair also fell below a swing area between 0.7475 and 0.74869.  That swing area is now close risk.  For shorts, stay below that swing area and the sellers hold onto short term control (with more work to do on the downside).

The price low for the day has now moved down to  test the floor going back to October 19 October 22 at 0.7453 (see red box and red numbered circles).  

A break below the red box would target the swing highs from October 15 and October 18 at the 0.7437 area. A move below that area, area, and the 38.2% retracement of the move up from the end of September low would be eyed down at 0.74078.

Hold support at the 0.7453 level and a rotation back toward 0.7475 and 0.74869 would be eyed by the dip buyers.

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November 03, 2021 at 02:02AM
Greg Michalowski
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