The November low is reached today and finds modest buying
The AUDUSD came under pressure today on coronavirus concerns. In the process, the price move below a trend line on the 4 hour chart below (trend line is currently at 0.6783 and moving lower), but found support buyers against the low price from the end of November 2019. That low came in at 0.67525. The low price today reached 0.67513. Since bottoming there has been a modest rebound. We currently trade at 0.67593.
Going forward a move below the now double-bottom, should lead to further probing to the downside. Looking at the daily chart below, the 0.67231 level is a low price from October 16, 2019. Below that swing low levels, the swing lows between 0.66714 and 0.66887 would be targeted (see lower yellow area in the chart below).
Should the double-bottom hold support, the underside of a trend line would be the hurdle that would give dip buyers more confidence for further corrective price action to the upside. That level can be broken in the new trading day the 0.6800 level would be the next upside target to get to and through.
The market is concerned about more bad news out of China regarding the coronavirus. Currencies like the AUD and NZD are vulnerable as a result of trade relations with China and geographic proximity. However, the price action today has so far found support where support should’ve held. In the new trading day, traders will reevaluate dependent upon if the double bottom can hold.