The ups and downs in the AUDUSD continued in trading today. The low in the Asian session found support buyers against the 38.2% retracement of the move-up from the December 10 low. That retracement level came in at 0.6555. The low price reached 0.6659.
The subsequent move to the upside took the price above its 100-hour moving average and 200-day moving average near 0.6574. That move opened the upside potential.
The price did spike above the higher 200-hour moving average at 0.65916 soon after the CPI data today. However, that break was quickly reversed. The price quickly extended back below the 100-hour moving average and 200-day moving average – tilting the bias more to the downside again. Selling continued through the 38.2% retracement (at 0.6555) and toward the low of a swing area at 0.61417.
Since then the price action has bounced back higher and back above the 38.2% retracement level in the process.
Ups and downs continue. Market volatility continues with shifts from bullish to bearish in the process.
What next?
What we know is traders may be waiting for the FOMC rate decision tomorrow for the next shove. Having said that, we also know that the 100-hour/200 day moving average at 0.6574 remains a barometer for bullish above/bearish below. The 200-hour moving average at 0.6591 is also a topside barometer that if broken would increase the bullish bias. Finally a move above 0.66199 would be another upside break that would get the price outside the 6-7 day trading range.
On the downside, moving below 0.65417 would increase the bearish bias. Move below it, and the low from last week at 0.6623 and the 50% of the move-up from November 10 at 0.65136 would be targeted.
This article was written by Greg Michalowski at www.forexlive.com. Source