Volatility is the name of the game for AUDUSD but buyers held support near key MA support

The AUD/USD, like many other currency pairs over the past 24 hours, has experienced significant volatility in response to the transition of power in the U.S. under Trump. Yesterday, the pair dipped to test the 100-hour moving average (MA), briefly breaking below it before quickly rebounding. A similar pattern emerged today with two separate breaks below the MA, though there remains a reluctance to sustain moves beneath this key level.

On the upside, the 38.2% Fibonacci retracement of the decline from the November 25 high has capped rallies, serving as resistance both yesterday and again today. This leaves the pair confined between strong support at the 100-hour MA and resistance at the 38.2% retracement.

Within this range, a swing area at 0.62457 provides an additional focal point. Traders should monitor this level for potential bullish or bearish signals, as the market remains balanced between support buyers and resistance sellers for now. A breakout in either direction could provide the next directional cue for the AUD/USD.

The video outlines the key levels in play and explains why.

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