Bulls and bears battle at critical daily support
- AUD/USD bears are lining up for a breakout.
- Current daily support needs to give to reveal the 0.71 area.
AUD/USD is testing the bull’s commitments following high volatility on Wednesday. The following illustrates the daily market structure and prospects for a downside continuation.
AUD/USD daily chart
AUD/USD has travelled to test the 50% mean reversion level near 0.7280 and fell just shy of the 61.8% Fibonacci retracement near 0.7300.
However, the move was a risk-on spike in the lead in and around the Federal Reserve. There could be some demand left in the market yet although more probable, a last-minute stop run opens risks of a downside continuation to come in the coming days ahead. A break of 0.7200 opens risk towards the 0.71 figure.