Lots of levels in a small area
The AUDUSD held a key floor at the 0.7521-24 earlier in the day and bounced back above the 200 day MA at 0.7530 and the 100 hour MA at around the same level (blue line in the hourly chart below). The 100 day MA looms above at 0.7555. The high today reached 0.7546.
The range today is only 25 pips. The average over the last 22 trading days (about a month of trading) is 54 pips. There is room to roam - either way.
So in summary, between 0.7521 and 0.75556 is the:
- Key swing level at 0.7521-24
- 200 day MA at 0.75306
- 100 hour MA at 0.75359
- 100 day MA at 0.75556
That is a lot of levels in a small area.
The pair has closed above the 100 hour MA for the last 8 hourly bars (we are in hour 9). The price just dipped below that MA level. The 200 day MA and that swing floor at 0.75218-34 is now eyed. Admittedly, the pair is not really reacting. It could still go either way. But what we know is at some point there will be a break with momentum.
PS. That broken trend line is also in the lower yellow area on the hourly chart.
PSS. Adam posted earlier that BNP Paribas says selling AUDUSD is their trade of the week (for what it is worth - CLICK HERE). They might not say it in their analysis, but if the 0.7521 level can be broken, they should get some help from the traders eyeing the break of that floor.