AUD/USD regained poise after a hefty decline in early trade Monday, what some analysts are labelling a ‘flash crash’. The move came within touching distance of 0.63 before rotating to the upside and testing February’s opening level at 0.6683, a daily range of more than 350 points. As of current price, traders seek ground beneath 0.66, with eyes likely fixed on 0.65.
On a wider perspective, weekly action stabbed support at 0.6359 and retested resistance at 0.6677, which is also visible resistance on the daily scale. Support on the daily timeframe, nonetheless, is seen around 0.6301.
The blend of February’s opening level at 0.6683 and weekly resistance at 0.6677 was a noted area in Monday’s technical briefing. With the H4 candles searching lower levels south of 0.66, traders short 0.6683/0.6677 are likely looking to reduce risk to breakeven, with the expectation of further gains to 0.65.
Disclaimer: The information contained in this material is intended for general advice only.