100 and 200 hour MAs being tested
The AUDUSD is consolidating in up and down trading. The pair moved up to test a topside trend line (currently at 0.7766 and moving lower) in the London morning session. The last 5 hours has seen the price move to test a lower trendline along with the 200 hour moving average and 100 hour moving average (green and blue line) at 0.77415 and 0.77347 respectively.
With the ups and downs today, traders will be looking for a break of the extremes with momentum for the next trend and bias clue.
A move below the 100 hour moving average would have traders targeting the lows from yesterday at 0.77208. Below that and the 0.7700 level followed by the low from Tuesday at 0.7688. That low is near the 38.2% retracement of the move up from the December 21 low at 0.76826
On the topside, get above the topside trend line and the high from yesterday at 0.7781 will be targeted followed by the Friday high near 0.7800 (the high price reached 0.77977 before turning around on Friday). The January highs reached up near 0.78194.
For now, traders are still looking for the break and the so far using the levels as support and resistance.
However, the continued convergence of those support and resistance levels on the hourly chart, implies that it is nearing a “decision time” for traders in the AUDUSD. Look for the next shove.