AUDUSD bounces. Close to a failed break below floor

The AUDUSD extended lower on Monday, continuing the downside momentum that began late last week on Thursday and Friday. However, as the pair pushed lower, buyers started to lean against a key swing area between 0.7100 and 0.7113, helping to slow the decline and stabilize the price action in early trading. That support zone once again proved to be an important technical floor for short-term traders.The bounce off Monday’s lows led to a modest recovery rally, with buyers attempting to regain near-term control. The rebound pushed the pair back toward the falling 100-hour moving average. However, the rally lost momentum before reaching that target, signaling that sellers were still maintaining firm short-term control despite the temporary recovery.As trading shifted into the Asian session today, sellers reasserted themselves and downside pressure resumed. Initially, the pair once again found support near the same swing area support zone, which also coincided with the 38.2% retracement of the rally from the late-March low at 0.71073. Buyers defended the area on the first test and managed to push the price back higher.That rebound, however, lacked conviction.The recovery stalled near 0.7122, well below the key moving-average resistance, and sellers quickly regained control. Once momentum shifted back to the downside, the AUDUSD broke below the important 0.7100 swing level, increasing the bearish tilt and opening the door for a deeper corrective move. The selling pressure eventually extended the pair down to a low of 0.7080.With the pair trading below the broken support zone, traders began eyeing the next major downside target at the 50% midpoint of the broader move higher from the March low, which comes in at 0.7055. That level represents a more significant technical support target and would likely become the next key battleground if sellers can maintain downside momentum.Since reaching the low near 0.7080, the pair has staged another recovery rally. The rebound has now pushed the price back up toward 0.71155, which is just above the upper boundary of the prior swing area resistance near 0.7113. The current price is trading around 0.7112, putting the pair right back in the middle of a critical short-term technical battle.The focus now shifts squarely to the old support zone between 0.7100 and 0.7113.Buyers are attempting to retake control of that area and turn it back into support, which would help stabilize the pair and potentially lead to a further corrective recovery. On the other hand, sellers are trying to defend the broken level and force the price back below 0.7100, which would reinforce the bearish bias and keep the focus on lower targets including 0.7080 and ultimately 0.7055.For now, the battle lines are clearly drawn. The short-term bias will likely be determined by which side wins control of the 0.7100–0.7113 zone. Above it, buyers regain some confidence and momentum. Below it, sellers remain firmly in charge with the downside targets still very much in play.