Trend line providing support

The AUDUSD only has a 39 pip trading range today. That compares to a 68 pip average over the last 22 days (about a month). So activity is limited so far, but there is room to roam.

Trend line providing support

Technically on the hourly chart above, the pair is respecting an upward sloping trend line on the dips. That trend line was first tested yesterday at the lows. The pair was also testing the 38.2% retracement and swing area (see lower yellow area) at the time. The combination set up the modest run higher today.

What now?

The price has moved up to retest the 100 hour MA at 0.71892 and is stalling so far. It will take a move above that level to have traders looking toward the swing area between 0.72019 and 0.72083 (see upper swing area and green numbered circles). Above that and the high from Friday at 0.72423 would be targeted.

For traders looking for more upside, in addition to getting above the 100 hour MA, support at the 200 hour MA (green line) will be eyed as support (at 0.71718). Stay above keeps the buyers happy. Move below and the technical waters get a bit more muddy and we could then see another test of the lower trend line (at 0.7161 currently and moving higher).