The AUDUSD is trading in a fairly narrow trading range of 33 pips versus 76 PIP average over the last 22 trading days (around month trading).
The confined range is largely a result of technical levels above and below that have buyers and sellers leaning on tests.
On the topside, the highs from Friday and Monday stalled the pair between 0.7535 and 0.75394. The high price today has reached 0.75349.
On the downside there have been a number of test of its 100 hour moving average currently at 0.7507. The current price is trading at 0.7514
Buyers and sellers are battling it out near the highs from 2022. They are likely looking for the next shove in one direction or the other. In the meantime, the battle rages with no winner one way or the other in trading today.
What happens on a break?
On a break to the upside, the pair would next target levels near 0.75602 (see daily chart below). There is a swing area between the highs this week and that higher extreme (see red numbered circles).
Move above that level and traders would target the 61.8% retracement the move down from the February 2021 high at 0.76094 (see daily chart below).
On the downside, a break of the 100 hour moving average would have traders looking at the 50% midpoint of the range since the 2021 high at 0.74867 (see daily chart below).
Move below that level and the rising 200 hour moving average (green line in the hourly chart above) at 0.7470 would be the next target. A move below that level would be the first break since March 17 and would likely increase the bearish corrective bias.
