The Australian dollar fell sharply against the dollar in US trading today on the back of the strong US jobs report. The bearish move has pushed the price below the 38.2% retracement of the upward move from the September 11 low at 0.6819 and also the bullish 100 bar moving average on the 4-hour chart at 0.6823.
On the downside, the pair is approaching another key level defined by the 50% midpoint of the upward move from the September 11 low, the 200-bar moving average on the 4-hours chart, and a swing level that goes back further than the September 11 low. September 18. This level comes at 0.67813.
Getting below that area opens the door for more downside momentum.
On the daily chart, the price also moved below the 61.8% retracement of the range since the high in January 2023. This level comes in at 0.68182, and is within the swing zone on the same daily chart between 0.6805 and 0.68206.
So the combination of technical levels on the hourly chart and daily chart identifies general resistance near 0.6820 to 0.6823. This will be the artistic ceiling of today and in the future. Staying down keeps the bears more in control. If so, the downside door will open further with a move below 0.67813.
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