The AUDUSD earlier this week tested the low of what has been a fairly confined trading range between 0.6575 AND 0.66896 (see red box on the chart below), and then tested the high of that swing area both yesterday and today.
So traders continue to trade the range by leaning on the downside and on the topside.
Ultimately, the price will extend outside of that trading range – outside the “red box”. A break should lead to more momentum in the direction of the break.
The goal is to get out of the “red box”. Until then, look for traders to continue to trade the range. In between, sits the 100/200 bar MA on the 4-hour chart.
This article was written by Greg Michalowski at www.forexlive.com.
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