The AUDUSD initially dipped during the Asia-Pacific session, but buyers stepped in against a key swing area between 0.7221 and 0.7227. That zone had acted as a ceiling from mid-April through early May before the pair finally broke higher. Since then, the price has traded back and forth around the area, with the level alternating between support and resistance.
On Friday, the pair moved back above the zone and successfully held it as support both Friday and again today. The repeated inability to move back below that area increases its technical importance for both the short term and the broader near-term outlook.
For sellers to regain more control, the price would need to move below the rising 100-hour moving average at 0.72336 and then break back under the 0.7221–0.7227 swing area. Such a move would disappoint buyers who have been leaning against support over the last two sessions.
If the pair does break lower, traders would then target the 200-hour moving average near 0.7205, followed by another key swing area between 0.7193 and 0.7200. A move below those levels would strengthen the bearish bias further.
On the topside, the next key targets are Thursday’s high near 0.7263 and Wednesday’s high at 0.7277. That resistance zone carries added importance because it lines up with a broader swing area from March 2022 between 0.7267 and 0.7283. Last week’s high stalled within that range, reinforcing it as a major resistance ceiling.
As a result, the technical picture is becoming well defined. Close support comes in near 0.7221, while close resistance extends up to 0.7283. Traders will be looking for a break outside either boundary to provide the next short-term directional clue, with momentum expected to build in the direction of the breakout.
