AUDUSD retraces back to a lower swing area ahead of the extreme lows going back to 2020

The AUDUSD is looking to close lower for the fifth consecutive day although today’s decline would be modest. The current price is just four pips off it’s closing level yesterday at 0.7122. The price is traded mostly above that level today but has rotated back to the downside going into the close.

Looking at the daily chart, the low price for the day reached 0.71005. Not only is at a natural support level, but is also near the high of a swing area between 0.70799 and 0.71038 (see red numbered circles and yellow area in the chart above). Support buyers may lean against that level with stops on a break below.

Should the swing area be broken, traders would then look toward the extremes lows from December 2021 and January 2022. Those levels come in at 0.6992 and 0.69669. An interim February 2021 low came in at 0.7051. That level would also be a target ahead of the lower extremes.

Hold the swing area, and we could see selling dry up in a corrective probe back to the upside.