Back at the 100 and 200 hour MA

The AUDUSD raced higher after better than expected employment data crossed the wires during the Asian Pacific session. The price rise looked to test a ceiling area at the 0.7722-0.77245 level. but stalled right at the level. The correction began. Admittedly, although the number of new jobs created was higher at 26.2K, the mix was not all that great as full time fell by 45.4K and part time increased by 71.6K. So there may have been some fundamental justification.

That fall has taken the price down to the 50% of the move up from yesterday's low at 0.7665. The low made it to 0.7650. The last 4 hours has seen the price consolidate around the 100 and 200 hour MAs at 0.7673-79.

Taking a broader view, the price of the AUDUSD has been cosolidating between a high of 0.7752 and a low near 0.7600. The price action has been up and down. That has led to the two moving averages converging. The market is unsure as to the next move. The 0.7671-78 is the neutral zone. The price can pivot around that area.

The outer ridges are around 0.7722 and 0.7622, with extremes at 0.7755 on the topside and 0.7596 down below. Be aware of the 0.7635 level as well.

The price will eventually break outside of the range - outside of the box. But in the meantime look to trade the outer ridges. If they hold, you have the midpoint area to get through and then look for traders to line up at the other outer ridge. Stops will be on break. Around the middle (like we are near now), flip a coin. You may catch the right move (higher or lower). If wrong, get out.