Moved a little above in trading today
The AUDUSD has continued the move higher that has seen the pair close higher the last three trading days . Yesterday was a big move up. That move stalled near the 50% retracement level (see chart below) at the 0.7468 level.
Today after basing in te Asian trading, the move higher has continued with the pair moving up to test the 200 and 100 day MAs at 0.75027 and 0.75078 levels respectively.
Over the last seven trading hours (see yellow in the chart below), the price has traded above and below those MA lines with a low of 0.7492 and an high at 0.75176 (so +/- 10 pips around the MA lines). The market is taking a breather. Some profit taking is coming in.
Drilling down in the 5- minute chart, the sideways price action has give the 100 bar MA time to catch up (at 0.7502 now). The price has moved above and below that MA over the last few hours. The MA line is starting to flatten.
The buyers are more in control, but with the 2 day MAs converged and close together, you would expect a move away after the markets gets it's breath back from the move higher - especially the last two trading days. It can tilt either way from here - hence the ups and downs over the last 7 hours. Longs still are in control but they have some work to do around the MAs and then the ceiling at 0.75175 area.
For shorts/sellers up here, they need to show they can keep the price below the day MAs AND also get and stay below the 0.7492. The ride back down will remain full of bumps and pot holes, but they could point to the day MAs and say "we stalled where we were supposed to stall".
