The AUDUSD has been respecting the 100 hour MA all day today (blue line in the chart above). The level comes in at the 1.0538 level currently. On two other attempts earlier today, the price tested and held. At the current level, the 38.2% of the move up from low on Thursday comes in at the same level. This should increase the importance of the level for this morning/today’s trade. Look for buyers against the level with stops on a move below.
On a break below, the next downside targets comes in at 1.05195 (see chart). This is the 50% of the move up from the Thursday low. Below that, the 200 hour MA comes in at 1.05109 (green line) and this is also a key downside target. A break below this level is needed to attract further downside momentum.
If support holds (and so far it is), the close yesterday was 1.0552. The high for the day is 1.0572. These would be the next obvious targets to breach. With the low to high range of only about 43 pips today, an extension above the high would not be a surprise.
Looking at the week, just like the EURUSD, the weeks low to high trading range for the pair is at multi year lows. The current range is a mere 72 pips (1.06018 high, 1.05294 low). From a historical perspective, this would be the lowest range going back to January 2007. I would expect a range extension between now and the end of the week. Respecting and holding the 100 hour MA today, keeps the bulls in charge – for now at least. Watch the levels for clues. There remains room to roam this week.