AUDUSD Extends Bullish Momentum into Third Week

The AUDUSD pair has risen for a third consecutive week, reaching its highest level since 17 September. This upward momentum began after the pair found support near the swing area between 0.6407 and 0.6424 on 21 November.

Key Technical Levels Cleared

During this rally, the pair overcame several important technical barriers, including:

– The 200-day and 100-day moving averages
– The 50% Fibonacci retracement level
– The 61.8% retracement level at 0.6597

Current Price Action: Resistance and Support

This week, the price extended above the swing area between 0.66247 and 0.6635, reaching a weekly high of 0.66845. However, buying momentum stalled just shy of key targets from 17 September at 0.6688 and 0.67064. This caused the price to pull back.

During the pullback, the price retested the breakout zone between 0.66247 and 0.6635, where buyers re-entered the market to defend the uptrend, pushing the price back upwards.

As we approach the market close, the price is effectively trapped between two clear technical boundaries:

– Support: swing area down to 0.66247
– Resistance: swing area cap at 0.6688

A decisive break above or below these levels will determine whether buyers or sellers take short-term control.

Next Targets for Traders to Watch

Bearish Scenario (Downside Risk):
If the price breaks below 0.66247, traders should watch the 61.8% retracement level at 0.6597. A move beneath this level could open the way to the 50% midpoint at 0.6563.

Bullish Scenario (Topside Breakout):
A break above 0.6688 targets the 17 September high at 0.6706. Clearing this level could trigger accelerated upward momentum, potentially challenging the highest levels of the year and those not seen since October 2024.

Video Analysis Available

Greg Michalowski, author of Attacking Currency Trends, provides a detailed video analysis breaking down the technical factors behind this move. He also outlines key risk areas and maps out the next critical targets for AUDUSD traders.

Stay alert and prepared.

Original Source: Greg Michalowski of investinglive.com