...backs off
The AUDUSD has stepped higher today after opening lower, moving above the 200 hour MA green line), and then moving above the 100 hour MA (blue line). The price has extended up to the familiar 0.7500 area where there have been a number of highs going back to Mid November. THe price has backed off from that resistance area and currently trades at the 0.7490 area. Looking at the chart, the price for this pair, has been getting more confined of late (since Dec 5th) with ups and down with the low defined by the 0.7410 and the high a 0.7507. Something has to give.
Today's lower opening (by the way, the low stalled at the 100 bar MA on the 4- hour chart) and basing against the 200 hour , and the breaking of the 100 hour MA suggests buyers are trying to take control. The question is "Can the pair squeeze even higher?"
Right now, sellers against the high can just as easily argue that the selling against the high resistance is par for this pair. Risk was defined and limited. It is now time to head back down. Watch 0.7485 now. That was an intraday high and then near a corrective low. It is near the 50% of the leg up from 0.7469 (see 5-minute chart below).
