MA 100 and 200 hours under test
AUDUSD consolidates in bullish and bearish trading. The pair moved higher to test an uptrend line (currently at 0.7766 and lower) during the morning session in London. The last 5 hours saw the price move to test a lower trendline with the 200 hour moving average and 100 hour moving average (green and blue line) at 0.77415 and 0.77347 respectively.
With today’s highs and lows, traders will be looking for a break from extremes with momentum for the next trend and the bias index.
A move below the 100-hour moving average would allow traders to target yesterday’s lows at 0.77208. Below that and the level of 0.7700 followed by Tuesday’s low of 0.7688. This low is near the 38.2% retracement of the upward move from the Dec 21 low of 0.76826
On the top, break above the uptrend line and yesterday’s high at 0.7781 will be targeted followed by Friday’s high near 0.7800 (high price hit 0.77977 before turning around on Friday). January highs hit near 0.78194.
For now, traders are still looking for the breakout and so far use the levels as support and resistance.
However, the continued convergence of these support and resistance levels on the hourly chart, implies that it is approaching a “decision point” for AUDUSD traders. Look for the next push.