AUDUSD fails at key resistance, sellers regain control below 0.6390 to 0.6407 | Forexlive

In unison

The AUDUSD rally yesterday ran into a firm wall of resistance, as price action stalled within a key swing area between 0.64278 and 0.6444. Notably, this zone also includes the 50% retracement of the decline from the October 1, 2024 high, adding to its technical significance. The high price reached 0.6437 before rotating lower.

In early Asian-Pacific trading today, the AUDUSD moved back higher and briefly made a new high at 0.6439, but once again failed to break through the top of the swing zone at 0.6444 (see red numbered circles). That failure set the stage for a downside reversal that has gained traction through the European and early U.S. sessions.

The pair has since fallen back below the February 20 high at 0.6407 and the swing level at 0.6390—a level that had acted as resistance in recent weeks (see green circles on chart). Yesterday, the price broke above that level. The inability to hold above 0.6390 is shifting the bias back in favor of sellers.

Currently, price is holding below 0.6390 at 0.6386. If sellers can keep the pair under the 0.6390 to 0.6407 area now, the door opens for a corrective push toward the next swing area support between 0.6326 and 0.63406. That zone represents a cluster of prior lows and highs that may attract buying interest again.

Sellers are making a play. Can they keep the downside corrective probing going?

Later this year,
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.