AUDUSD trades between the Goal Posts

The AUDUSD had a wild ride overnight with the RBA cutting rates and sending the price tumbling down to the 100 hour MA (blue line). At that level buyers entered and pushed the price sharply higher to new 3+ day highs (at 0.9802).

In the London morning session, another push lower once again tested the 100 hour MA (see blue line) . The rebound off this level, found sellers against the underside of the broken trendline and the 200 hour MA. The borderlines have been set.

When the price trades between a spread 100 and 200 bar MA, I calll the situation “Trading between the Goal Posts” with the goal posts defined by the 100 and 200 hour MAs. When this situation occurs, it says to me the buyers and sellers are in balance and not sure of the next directional move (so it settles in a comfort zone). Look for sellers against the 200 hour MA and buyers against the 100 hour MA. Eventually, a decision willl be made and a break will occur. Look for momentum in the direction of the break.