AUDUSD traded to a new 2022 low at 0.6669 and in doing so, moved to the lowest level since late May/early June 2020.
This move brought the price into a swing zone dating back to before the pandemic in 2019 and after the pandemic slumped in March 2020. This zone lies between 0.6647 and 0.66809. Once again, today’s low price has stood at 0.6669 so far. The current price is trading at 0.6682 just above the high of this zone. Buyers lean in despite fresh 2022 lows.
Moving down to the hourly chart, the pair broke today below the September 6th lows at 0.66988 at the start of the Asian session, bounced higher and extended above the September 8th lows. September at 0.6713, but fell back in Europe. session that the currencies were sold in the US dollar was bought. This brought the price to the low at 0.66692.
Since then, the rebound has taken the price back to the September 7th low of 0.66989 (let’s call it 0.6700) but found early sellers against that level.
Going forward, the 0.6700 level is a close target to reach and cross if the bulls want to take more control in the near term. This would be a step in the right direction, but understand that there would be more work to do for the bulls to gain more control, including breaking above the 0.6713 level. The 100 and 200 hourly moving averages are currently around 0.6771. Ultimately, if the bulls want to take control, it would be necessary to break above these moving average levels (and the 38.2% retracement of the recent move lower just below them at 0.67633).
For now, in the short term, watch the 0.6700 level in the 0.6713 level as the first targets that should be breached if the bulls are to get back into the ball game.