On December 1 I mentioned the AUDUSD. The 0.7635 level stood out as a key hurdle that buyers needed to overcome in order to push prices higher.
However, they failed to do it on the 1st of December and again on the 5th. The latter actually formed a bearish pin bar from 0.7635, sending the pair 150 pips lower.
But all of that changed on Thursday. The 0.7663 close put the pair 28 pips above the key 0.7635 handle. With this in mind, any retest of the 0.7635 area as new support will likely encounter an influx of buying pressure.
Note that the AUDUSD is also bouncing from an established trend line from the 2015 low.
I’ll be one of those watching for bullish price action from the 0.7635 area. It won’t be until next week, though, given that we just entered the final 24 hours of the current trading week.
As for resistance, the next key level comes in at 0.7730. The area served as a pivot between October 6 and November 2. It also played a role in capping the mid-June advance. Beyond 0.7730 we have 0.7820 followed by 0.7955.
Alternatively, a daily close at 5 pm EST back below 0.7635 would negate the bullish scenario I just described.