AUDUSD pair remains in up and down range between 0.7221 to 0.73392
The AUDUSD reached a high at 0.73392 today. That was equal to the high from last week (on Monday November 9th (see green numbered circles). Sellers leaned against the level (now a ceiling). The weaker retail sales has helped to push the pair lower (as is the stock declines as traders exit risk).
The pair is testing a swing area between 0.7288 and 0.7300 now. A move below will have traders looking toward the converged 100/200 hour MAs at 0.72783 area (blue and green line). Below that is an old swing low from Nov 9 and 10 at 0.7266 and below that is another swing area at 0.7238 to 0.72453. The low floor of the range since November 5 comes in at 0.72211.
When the price trades in an up and down range, the MAs tend to move toward each other (that is where we are at now) near the middle of the up and down range.
There tends to also be swing areas (see yellow areas) between the floor and ceiling extremes. That price action is saying that “the market” (or collection of buyers and sellers) are unsure of the next move. As a result, traders are happy to lean against low and high extremes, with internal swing area(s) and MAs also potential intraday bias defining areas.
At some point, the low to high range will be broken, and there is hope for a trend like move away from the “neutral area”.