The AUDUSD is trading higher today, boosted by risk-on sentiment as US stocks surge. The Dow is up 633 points (1.52%), while the S&P 500 and Nasdaq have gained 2.00% and 2.95%, respectively. In the European session, the AUDUSD reached a new high, but struggled to sustain momentum above a key resistance zone between 0.6818 and 0.6823. The price briefly touched 0.68384 before pulling back to a low of 0.6786, and has since rebounded.
The next upward move has brought the price back to the critical area between 0.6818 and 0.6823, where buyers are seeking to regain control. The 0.6818 level represents the 61.8% retracement of the decline from the February 2023 high to the October 2023 low, while the 0.6823 level corresponds to a swing high from August 29 of this year.
For traders, if the price can break and hold above this zone, buyers will likely maintain their bullish momentum. Conversely, failure to breach this level could lead to profit-taking and downside probing
Buyers and sellers be on alert. This is a key area for both.
This article was written by Greg Michalowski at www.forexlive.com.