The AUDUSD has been in an up-and-down trading range over the last 6 or so trading weeks. The low of the extreme comes in near 0.6356. The high of the extreme comes in at 0.6521. In between sets the 100 and 200 bar moving averages on the 4-hour chart at 0.6431 and 0.6446 respectively (blue and green lines in the chart below).
The high price reached yesterday in the pair got within 11 pips of the triple top at 0.65214. Early sellers leaned against that level and forced the price back to the downside helped by the FOMC rate decision.
The subsequent low reach today stalled within a swing area (see blue numbered circles in the chart below) ahead of the extreme lows for September down at 0.6364 and 0.63456. The low price today reached 0.63847. The current price has moved back above the 0.6400 level and looks toward the lower 100 bar moving average at 0.64316. The high price reached 0.64271 just 4 pips away from that moving average level.
What next?
Sellers seem to be leaning against the moving average levels keeping the sellers more in control below the 100 and 200 bar moving averages. It would take a move above each to shift the bias more in favor of the buyers.
Absent that, and traders will continue to pound the lower end of the extreme including the swing area between 0.6379 and 0.6387, and the swing low at 0.63567.
This article was written by Greg Michalowski at www.forexlive.com. Source