Swing area, 200 hour MA and 38.2% of the month trading range stalls the rally

The AUDUSD moved above its 100 hour moving average for the first time since July 15 in the Asian session. That tilted the bias more to the upside and the price moved higher.

Swing area, 200 hour MA and 38.2% of the month trading range stalls the rally

The high price for the day approached a cluster of resistance defined by a swing area between 0.7398 and 0.74083, the falling 200 hour moving average (green line currently at 0.7403) and the 30.2% retracement at 0.74072. The high price reached 0.7397, and has rotated back lower.

The move back lower has reached 0.73548. That low stalled around five pips away from the aforementioned 100 hour moving average currently at 0.73492. The current price trades at 0.7361.

The traders that position the price between the 200 hour moving average above and the 100 hour moving average below (or between the “goal posts”.  The dynamic is a neutral one as there is a little more bullish above the 100 hour MA, but a little more bearish below the 200 hour MA.  

Traders will be looking for a break outside MAs for clues to the next momentum move in the pair. 

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