AUDUSD snaps back higher, nearly erasing the gap lower on the dollar buying on tariffs

The AUDUSD fell sharply on the tariff news and in the process, the price fell below a swing area between 0.61621 and 0.6178 the momentum continued until reaching the lowest level going back to April 2020.

However, the sellers turned buyers and after breaking back above the low price from January at 0.61306, there was increasing upside momentum.

Getting above the swing area between 0.6162 and 0.6178 and the 38.2% retracement of the move down from the January high and 0.61805, added to the positive technicals.

Going into the new trading day, staying above 0.6162 is required to keep the buyers in firm control. On the top side, there is swing area resistance at 0.6196 to 0.6200. Above that, the 100 hour moving average and 50% midpoint are both than 0.6209. Get and stay below those levels adds to the bullish bias as well.

AUDUSD

This article was written by Greg Michalowski at www.forexlive.com.