AUDUSD traders using moving averages to define boundaries today

<p>Traders in the AUDUSD are using moving averages on the top and bottom sides to define the boundaries today. </p><p>Looking at the chart below, the AUDUSD moved higher after the weaker US ISM manufacturing data, but ran into a cluster of moving averages including:</p><ul><li>200-hour moving average of 0.66814</li><li>200-day moving average of 0.66912</li><li>100-day moving average of 0.66966</li></ul><p>The high price extended to 0.66913, but has rotated back lower and currently trades at 0.66715.</p><p>On the downside, the low price today stalled near the low of a swing area between 0.6637 and 0.6652. The 100-hour moving average is also within that area at 0.66392 currently (blue line in the chart below). Getting below that area is needed to increase the bearish bias.</p><p>Overall, the buyers and sellers are battling it out with the 100-hour moving average and swing area below, and the cluster of daily moving averages in addition to the 200-hour moving average above. Those levels will be key in trading not only today but this week. Traders will look for the next shove either higher or lower for bias-defining clues. </p><p>Moving above the upper boundary is more bullish. Moving back below the lower boundary is more bearish.</p>

This article was written by Greg Michalowski at www.forexlive.com.