The AUDUSD currency pair is currently experiencing limited movement within a confined trading range. Notably, there’s a visible hesitation to drop below the 38.2% Fibonacci retracement level, which traces back to the rise starting from the low on November 10. This critical level is identified at 0.65552. Should the pair consistently trade below this threshold, it would signify an intensification of the bearish trend.
Conversely, on the upper side of the range, resistance is being established by the convergence of the 200-day and 100-hour moving averages, located around 0.6674. For a shift in momentum favoring the buyers, sustaining a position above this resistance zone is crucial.
This week is particularly significant due to several anticipated central bank decisions, including those from the US Federal Reserve, the Swiss National Bank, the European Central Bank, and the Bank of England. These decisions are expected to inject considerable volatility into the market, affecting pairs like AUDUSD.
Understanding these pivotal price levels is crucial, even in periods of limited price action, as they provide traders with a strategic framework for navigating potential market shifts. In my video analysis, I delve deeper into these critical levels and the potential targets traders might consider in the event of a market breakout.
This article was written by Greg Michalowski at www.forexlive.com. Source