Over the past three trading days, the AUDUSD has predominantly experienced consolidation, with a swing low area ranging from 0.6665 to 0.6673 and a swing high area between 0.6724 and 0.6730 (approximately 65 pips). This consolidation has allowed the 100-hour moving average (blue line in the chart above) to catch up with the price, currently standing at 0.66749. Today, the pair has been hovering along the 100-hour moving average for around nine hours, with a minor break during the London morning session. Despite this break, the price found support within the lower swing area, with buyers remaining resilient at the 0.66656 level. The current price hovers around the 100-hour moving average.
While support is holding, upward movement remains minimal as sellers continue to apply pressure. The key question is whether the 100-hour moving average and swing area can maintain support down to 0.66656. If support holds, traders will monitor the previous swing area between 0.6691 and 0.67036 on a potential upward move. A break above this area will shift focus to the swing highs between 0.67239 and 0.67296.
On the other hand, if the 100-hour moving average and the 0.66656 swing low area are breached, sellers will face one last obstacle at the 200-hour moving average of 0.66562 before gaining full control. Due to the recent consolidation, several key levels are in play. Traders should closely observe price action and anticipate momentum in the direction of the eventual breakout.