- AUD/USD is stalling in an area of demand and a correction could be imminent.
- The bulls will note a confluence area on the daily chart as an appropriate upside target.
AUD/USD has been a poor performer this week and is headed for a bearish weekly close. The following illustrates the prospects, however, of a correction on the daily time frame from a key area of prior resistance.
AUD/USD daily chart
The price could be headed for a liquidity run into the prior support as illustrated above. The 50% mean reversion level of the daily bearing impulse has a confluence with the prior Nov lows near to the 0.7360s. The 10-day EMA is also in close proximity to that area which may act as resistance also.
