The AUDUSD rallied strongly yesterday, lifted by renewed optimism surrounding a potential US-China trade resolution. That momentum initially carried over into today’s Asian session, with the pair extending modestly higher before stalling and turning lower ahead of the European open.
The early pullback, however, was well-contained, as buyers stepped in just above the 38.2% retracement of the decline from the September high at 0.65418—a level that has now proven its technical importance. Notably, the market also respected this same retracement during yesterday’s brief corrective dip, reinforcing its role as a key pivot support zone for traders.
Holding that level gave buyers the confidence to reassert control, and once the pair pushed above the earlier session high near 0.6564, momentum accelerated, driving the AUDUSD through the 50% midpoint of the same September-to-October move lower at 0.65733. That midpoint now acts as near-term support, followed by secondary backing at 0.6564, the former breakout area.
For bullish traders, those zones define risk and will be watched closely for signs of renewed buying interest on any dips. As long as the pair holds above them, the upside door remains open for a potential run toward the next retracement target near 0.66049.
The video above breaks down these technical guideposts in greater detail and explains how buyers have used Fibonacci levels to map the current recovery phase.