Traders in the AUDUSD are using moving averages on the top and bottom sides to define the boundaries today.
Looking at the chart below, the AUDUSD moved higher after the weaker US ISM manufacturing data, but ran into a cluster of moving averages including:
- 200-hour moving average of 0.66814
- 200-day moving average of 0.66912
- 100-day moving average of 0.66966
The high price extended to 0.66913, but has rotated back lower and currently trades at 0.66715.
On the downside, the low price today stalled near the low of a swing area between 0.6637 and 0.6652. The 100-hour moving average is also within that area at 0.66392 currently (blue line in the chart below). Getting below that area is needed to increase the bearish bias.
Overall, the buyers and sellers are battling it out with the 100-hour moving average and swing area below, and the cluster of daily moving averages in addition to the 200-hour moving average above. Those levels will be key in trading not only today but this week. Traders will look for the next shove either higher or lower for bias-defining clues.
Moving above the upper boundary is more bullish. Moving back below the lower boundary is more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source