The 100 and 200 hour MA have been broken back to the upside

The AUDUSD has seen the 100 and 200 hour MA start to converge toward to each other as the price trades up and down within a support and resistance range. the 100 hour moving average is currently at 0.72615. The 200 hour moving averages at 0.72739.

The 100 and 200 hour MA have been broken back to the upside

On the outside edges of a trading range over the last eight or so trading days, has the lows from last week forming a bottom between 0.72199 and 0.72224 (see red numbered circles).

On the topside, the highs for the week stalled ahead of the 38.2% at 0.73184 and a swing area between 0.73125 and 0.73226(see green numbered circles). The high price reached 0.73159.

Meanwhile, the price action today has seen the price

  • Open below its 100 hour moving average (blue line),
  • Break above the 100 hour moving average and also above the 200 hour moving average (green line).
  • In the early European session, the price moved back below the 200 and 100 hour moving averages.
  • Now in the early US session, the price has once again moved higher and cracked back above its 100 and 200 hour moving averages.

Not only has the range been confined by support near 0.7220 and resistance near 0.7318, but intraday, the ups and downs can be quite frustrating for buyers and sellers looking for some consistent directional bias.

What now?

Although there is up and down volatility, the moves back above the moving averages tilts the bias more to the upside intraday. Stay below the moving averages keeps the buyers more control with the 0.7300 level and the highs from last week near the 38.2% retracement near 0.73184 as the next targets as long as the bullish bias can remain.