The AUDUSD has been ping-ponging this week in volatile up and down trading. Looking at the chart below, the price action initially was to the downside. Support held against a upwards open trendline.
The move back to the upside – helped by the FOMC rate decision – extended to a downward sloping trendline where sellers leaned. The price started to move back to the downside.
That move saw the pair extend below moving average levels to a low today that retested the upward sloping trendline once again. Support buyers came in for the second time this week against the trendline.
Going forward, the ping-ponging between the trendlines provide the roadmap for buyers and sellers. Stay above the lower upward sloping trendline keeps the buyers in play. Move below that trendline increases the bearish bias.
Conversely, moving back up to the higher downward sloping trendline gives sellers an opportunity to lean once again. If the price were to move above the top side downward sloping trendline, that would increase the bullish bias.
In between those trendlines are the cluster of moving averages including the 200-bar moving average on the 4-hour chart at 0.6544, the 200-day moving average of 0.6554. The 100-bar moving average on the 4-hour chart at 0.65627, and the 100-day moving average at 0.65858.
AUDUSD ping-pongs between trend lines