The AUDUSD is trading at 0.6723 which is near the middle of close resistance at a swing area up to 0.6768 and close support with the 100 day moving average and 0.66929 and the low of a swing area at 0.6685. The true midpoint of that range is 0.6725.
With the price at 0.6723 the price is within a couple pips if the true mid-point. That suggests to me that buyers and sellers are battling it out.
It also gives traders the roadmap for going forward. Break outside of either extreme and look for momentum in the break. Traders can also play the ranges by leaning at the extremes with stops on the break. If it doesn’t break, take advantage of the reversal the other way.
How ever it is traded, what we do know is at current levels the price is in the middle with traders waiting for the next shove – one way or the other – with momentum in the direction of the break eyed.
This article was written by Greg Michalowski at www.forexlive.com. Source