AUDUSD sets up for a break (one way or the other)
Above the 100 hour MA or below the floor
The AUDUSD took a day off watching the political squabbles in the UK and the US.
The range for the day is only 25 pips. The 22 day average is 47 pips.
Although the price action had a little up and a little down, the extremes stalled at technical levels which increases those levels importance Foing forward.
For example, on the topside today, the 100 hour MA stalled just above the 100 hour MA (blue line, currently at 0.68908) The high for the day reached 0.68962. A trend line cuts across at around 0.6900. So call the 0.68908 to 0.6900 area as the level to get above (and stay above) if the bottom is in place (at least for now). Look for momentum on breaks of those levels with the 200 hour MA (green line as the next targets).
On the downside, the low on Friday and again yesterday came in at 0.6864-66. That is the floor to get below. Ahead of that is a trend line at 0.6873. Moving below both open the downside for the sellers.
When the market consolidates it is time to think of the next move and break. If you like the downside, you can sell near topside levels OR play a new break. If you like the upside (corrective idea), buy a dip against the floor or trend line, or play a break above the ceiling.
The look for "the market" to agree and lead to a momentum break.