AUDUSD setting up for a showdown between buyers and sellers | Forexlive

The AUDUSD has moved down and back up again. That is the same price action seen during trading yesterday.

That up and down movement has seen the AUDUSD also trade above and below the 100 day MA at 0.6729. Typically, traders move away from that MA on a break. That is not the case over the last few days.

Traders are more unsure. The price action above and below the 100 day MA is indicative of that.

The low today also stalled ahead of the lows from yesterday down to 0.66975, giving the buyers a little edge from that failure. The low reached 0.6703.

On the topside, the price has moved above the earlier high for the day and in the process has tested a topside trend line connecting the recent highs. The price has backed off against that level but selling is still limited.

So what next?

Although the price action is lower in February, the sellers had their shot below the 100 day MAs. Looking, at the daily chart, the price decline also fell short of the 50% retracement of the move up from the October low at 0.66633. Are buyers sticking a toe in the water? Seems that way.

Having said that, there is work to do if the buyers are to take more control. .

The topside trend line is the first hurdle. Following that is the falling 100 hour MA (blue line on the hourly chart above). That comes in at 0.67659. Above that and the 38.2% of the last leg lower at 0.67825 would be eyed.

So you can see, there may be some small signs of buyers trying to make a play, you can also say the sellers are still in play. Get above the 100 hour MA before moving back below the 100 day MA is the decision tree for traders now. Time will tell.