AUDUSD stays in its choppy mess
The AUDUSD moved sharply higher with the dollar selling post the CPI data.
Looking at the hourly chart above, the price high raced above its 100 and 200 hour MAs in the process at 0.73564 and 0.73671 respectively.
Since peeking near 0.73863, the price has moved back down to retest its broken 200 hour moving average and so far held support. Staying above keeps the buyers more in control. Move below and we could see a rotation back toward the 100 hour moving average level (at 0.73564).
Overall, the low price from yesterday did stall against the July 28 low and in the process, the pair remains within the choppy up and down messy trading range that has seen the price stay between 0.73155 and 0.7426. That is only 110 pips over a period of around three weeks. That’s not a lot.
The midpoint of that range comes in at 0.73708.
At some point the price will get out of this narrow up and down trading range. For now, traders need to take clues from the technicals. Buying the low yesterday was a low risk trade against the swing low from July 28.
Now…. staying above the moving averages is the short term trading play. If the price can hold support against the moving averages, their should be a move toward the upper extremes (if the pattern continues).