AUDUSD remains in 12 day bullish and bearish trading range
Since breaking above 0.7221 on November 5 (breaking out of the November 4 high), the pair has traded between that level and the high at 0.73392 (around 120 pips). We are on day 12 since this break. During this period, the price retested the 0.7221 level on November 12 and 13, and retested the November 9 high on November 17 and 18 (below 9 pips).
Technically, price action this week saw movement down to a swing area between 0.7249 and 0.72539. The price supported this level.
Today the price first moved down and moved away from the 200 hour moving average at 0.72843 (green line in the chart above), but recovered and based near the moving average of 200 hours, moved above the 100 hour moving average at 0.72994 (also a natural technique level). The most recent bearish test based on this level of 0.7300 before breaking into a new session high at 0.73232.
The AUDUSD price is currently trading at 0.7311.
The return above the moving averages re-sloped the bias upward. That said, the pair remains in the high and low trading range (s). Still, staying above the 100 and 200 hour moving averages is more bullish. The topside targets remain at 0.7330 then the double top at 0.73392.
A return below the 100 hour moving average would neutralize some of the bullish re-tilt. A return below 0.72843 would increase the bearish bias and put sellers back in control.
Both upward and downward price action indicates a market that is unsure of the next move (otherwise it would have moved away from that narrow area). At some point there will be a break and a race.
As traders, we must respect the view of “the markets” (the “market” is the set of all buyers and sellers and their perception of where the price should be). If they get the higher push from a vaccine delivery, new stimulus, positive economic news, or some other positive news, technicians will back that up. If there is any disappointment due to delays in vaccine delivery, lack of stimulus, deteriorating economic conditions, etc., price action will show that it is good.