Trading is quiet

The AUDUSD shot up yesterday and in the process was able to extend above a:

  • Topside trend line
  • 50% retracement
  • High from last week.

That was a bullish move.

However, the gains started to unravel as each of the bullish signals were taken back By the end of the day, the price had also dipped back below the 100 hour MA and the 38.2% of the move down from the November 1 high at 0.7607. The last 4 or so hours have been able to stay below that level and it will be a short term risk level for shorts.

If the price is able to extend above, the bearishness started yesterday may now be totally gone. I would expect that the old trend line (see red circles) would continue to provide a ceiling for rallies. That trend line cuts across at 0.7622. Stay below and sellers are more in control.