100 hour MA and 200 hour MA define the range today
The AUDUSD moved above its 100 hour MA (blue line in the chart below) and held that MA line in the early Asian session. The support gave buyers the go-ahead to explore higher. That exploration stalled at the 200 hour MA (green line) not once but on two separate occasions. I call that dynamic "trading between the goal posts", with the "goal posts" being the 100 and 200 hour MAs.
Why does it do it?
The market is unsure of the directional bias for the pair.
Looking at the chart above, the trend has been down, but yesterday, the price did get close to the 100 day MA (see overlayed line marked "D1 MA:100.0" int he chart above). That was key support and buyers stalled the fall.
The subsequent rally off that support level broke above the trend line - more bullish - and then the 100 hour MA - also bullish. However, on the test of the 200 hour MA, the buyers turned to sellers. Risk could be defined and limited against the level and the 90 pip move from the low, was enough.
What now?
Well, there is reason to lean against the 100 hour MA below (and traders have done that), and against the 200 hour MA above (and traders have done that too). Look for them to do the same.
At some point the price will make a break and traders will look for momentum on that break. Until then trading between the "goal posts" seems a logical trading plan.
