Ups and downs
AUDUSD had a higher rise, fall and back up trading week today.
The pair closed last Friday at 0.7353, on Monday chopped up and down, closing the day lower.
On Tuesday, the initial move was smaller, but support buyers reached the lowest level on July 28, creating a double bottom at that level (0.73155 in the region).
On Wednesday, after the initial decline, the price saw a sharp upward rise, cracking above its moving average of 100 and 200 hours (blue and green lines).
On Thursday, the pair reversed Wednesday’s movement, halting the decline near the trend line.
Finally, today, after initially resisting the 100-hour MA, the pair found support for the above trend line, and after exceeding the 100-hour moving average, traders moved against the decline to the MA level. Buyers took control, helped by a much weaker-than-expected Michigan sentiment survey. The 200-hour moving average was reversed, as was the 50% midpoint of the August trading area at 0.75653 and 0.73708, respectively. The pair peaked at 0.73809, down from Wednesday’s high of 0.73885.
If you have such up-and-down activities during the day / week, the “market” is uncertain. Adding to this uncertain plot is the fact that the pair remained within the 17-day trading area for 17 days. Three plus weeks. 1100 connectors. It’s not much (although there have been many up and down moves).
What now ends the week and traders are watching the new week?
There is a pause behind the idea and running at some point. To prepare for this, traders need to look for bullish / bearish clues. I know that the price this week has seen the price move above and below 100/200 hours of MA (whipping traders), but it is important to listen to these technical tips.
Currently, pairs are above both the 100 (based on) and the 200-hour moving average (blue and green lines). Stay above the 200-hour moving average and buyers have better control over it. Scroll down and traders can sell against it (agaIn), looking for a 100-hour MA to re-test and see what happens there.
If the 200-hour MA can withstand, buyers will focus on the top half with a 61.8% relocation at 0.73838, at the week’s peak of 0.7381, and then at 0.77400. Above and from July 29 to August 6, a high swing between 0, 7413 and 0, 74152 would be from August 4 to the highest eye 0.74260.