AUDUSD volatility continues:Ups and downs in trading shift market sentiment.Wait for break

<p>The ups and downs in the AUDUSD continued in trading today. The low in the Asian session found support buyers against the 38.2% retracement of the move-up from the December 10 low. That retracement level came in at 0.6555. The low price reached 0.6659.</p><p>The subsequent move to the upside took the price above its 100-hour moving average and 200-day moving average near 0.6574. That move opened the upside potential. </p><p>The price did spike above the higher 200-hour moving average at 0.65916 soon after the CPI data today. However, that break was quickly reversed. The price quickly extended back below the 100-hour moving average and 200-day moving average – tilting the bias more to the downside again. Selling continued through the 38.2% retracement (at 0.6555) and toward the low of a swing area at 0.61417.</p><p>Since then the price action has bounced back higher and back above the 38.2% retracement level in the process.</p><p>Ups and downs continue. Market volatility continues with shifts from bullish to bearish in the process.</p><p>What next?</p><p>What we know is traders may be waiting for the FOMC rate decision tomorrow for the next shove. Having said that, we also know that the 100-hour/200 day moving average at 0.6574 remains a barometer for bullish above/bearish below. The 200-hour moving average at 0.6591 is also a topside barometer that if broken would increase the bullish bias. Finally a move above 0.66199 would be another upside break that would get the price outside the 6-7 day trading range. </p><p>On the downside, moving below 0.65417 would increase the bearish bias. Move below it, and the low from last week at 0.6623 and the 50% of the move-up from November 10 at 0.65136 would be targeted.</p>

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