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AUDUSD: Keep an Eye on These Two Resistance Areas

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

AUDUSD is bouncing today from our target at 0.6750.

I first wrote about the short idea on July 24th. At the time, the pair was still trading above ascending channel support at 0.6960.

However, given the broader descending channel, a break lower seemed all but guaranteed.

I mentioned the 0.6750 target again on August 1st following the break below 0.6830.

The AUDUSD reached a low of 0.6748 yesterday and is bouncing from today’s low of 0.6749.

If this larger descending channel holds up, we could see AUDUSD continue to correct higher over the coming sessions.

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That said, the longer-term downtrend is very much intact.

In fact, since January of last year, the AUDUSD has lost more than 1,300 pips.

I don’t want to fight that kind of bearish momentum.

So with that in mind, I prefer watching for selling opportunities as long as this broader descending channel is in play.

One level that could produce an opportunity is 0.6830.

It supported the pair on June 18th and is also the 2016 low.

If we don’t get any bearish price action there, I will look to the 0.6900 region.

Notice how 0.6900 served as a pivot during the second half of May. It also attracted buyers on July 10th.

Keep in mind that we may not see a retest of 0.6900 or even 0.6830.

While I would prefer to sell AUDUSD at higher prices, the pair may have other plans, which means I need to stay flexible in my approach.

For instance, there’s a chance this market breaks 0.6750 support sooner than expected.

That would likely trigger an abrupt selloff toward the next key support at 0.6660.

For now, though, I’m going to stick with the notion that AUDUSD needs to unwind higher before sellers are ready for the next leg down.

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AUDUSD key resistance levels

About the Author Justin Bennett

Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...

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  • Joe Matkin says:

    Hi Justin, Quick question do you consider fundamentals in you’re trade decisions?

    • Justin Bennett says:

      Not at all. I know when events are occurring, but I don’t use the outcomes to make trading decisions.

  • Kelvin says:

    Thanks for good information,

  • Syed Hassan says:

    Thank you, Sir !

  • simi says:

    that means we should have only sell in audusd

    • No, you need to do whatever is appropriate for your trading style and criteria for entering the market. The above is just my opinion.

  • Tetan Michael says:

    Professor Bennett, u are such a genius & surprisingly generous with ur professorial skill in d FX Market. BRAVO!

  • Dargo says:

    I really like your analyses, this one is very clear and understandable for any trader even beginner. I trade over 10 years and many has changed in my methods after I found your site some 4-5y ago… thanks to you I found out that simplicity of the system is the best recipe for a calm and balanced trading. All the best for you Justin

  • cK says:

    Thank you Justin for your Timely & Precise analysis 🙏🌻

  • Samuel says:

    thanks for the selfless service, what is the next move on AUDUSD . will it still continue on bearish move

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