Pair trades in a narrow 24 pip trading range
The AUDUSD is mired in a narrow 23 pip trading range. The low comes in at 0.7187. The high is up at 0.7210. The average trading range of the last 22 days has been 65 pips for the pair.
Technically, the low price today bottom near the broken 38.2% retracement of the move down from last week’s high to the low from last week. That comes in at 0.71887. The low today reached 0.71872. The floor area held despite the break of it’s 200 hour moving average at 0.71924 currently. Each of the breaks today (there were 4 hourly bars below the moving average level) could not solicit more momentum selling. On the topside, the pair was able to extend above the 50% retracement at 0.7205 but could not reach the high from Friday’s trade at 0.72153. The dual highs for the day stalled between those two levels at 0.72102.
When the price trades in such a narrow range, something has to give (I like to think of it as a spring coiling). Traders will be looking for a break with momentum.