The AUDUSD has consolidated the gains from yesterday which saw the pair move away from the 50% midpoint of the 2023 trading range. That midpoint level comes in at 0.67134. The high yesterday extended to 0.6774. The high price today extended to 0.67785 to a new 4+ month high but only barely.
The low for the day reached 0.6748 for a low-to-high trading range of only 31 pips. That is less than half of the normal range over the last month of about 64 pips.
Needless to say, there is not a lot going on. However, the sellers are not exactly “winning” over the control either.
What would shift the bias and lead to more downside corrective probing for traders?
Looking at the hourly chart below, a move below the rising 100-hour MA at 0.67266 would likely be needed to give sellers more confidence and lead to more downside probing. On a break lower, there is not a lot of support ahead of 0.66816 to 0.66896. That area is home swing levels (see blue numbered circles) and the 38.2% of the move up from the December low (the December trading range).
Absent a move below the 100 hour MA and the buyers remain the dominant from a technical perspective.
This article was written by Greg Michalowski at www.forexlive.com. Source