The AUDUSD pair is consolidating after retesting support at 0.7042 and pushing up to form a range at 0.7131. The price is moving between these levels and traders will look to take advantage of a break up or down. Resistance above the top of the range can be seen at 0.7140 followed by the 0.71570 level. A break higher from 0.7131 could quickly get to the latter level. Above these levels price previously consolidated around the 0.7180 area with a high at 0.7203, part of a bigger area around 0.7200.
Support can be seen at 0.7111 as price is in a tight band this morning. A loss of this level may force price into the 1 hour moving averages, with the 200 HMA falling at 0.7103 and the 50 HMA at 0.7100. This level is quite significant at present. The 100 HMA is moving up towards the level from below at 0.7091 making the whole area around 0.7100 quite supportive. Below this area the 0.7080 level may provide support but a failure of this level could lead to a drop to the range bottom and beyond to 0.7000.
The GBPJPY pair is consolidating under 150.000 since late September. It is leaning on the 200 DMA as support at 147.225. There is also the 147.000 level just below that has been used as support previously. A loss of these levels may see a drop to where the 50 and 100 DMAs are crossing, at 145.600. The 50 DMA is moving up through the 100 DMA, signalling a bullish control. Below this area the higher low at 142.594 was used as support in late August and early September and might be supportive if price falls down to that area. The August lows at 139.900 show how price pierced support at 140.000.
Resistance above 150.000 will be carefully watched by traders. Price could move quickly to 152.600/152.750 where a bounce from the 100 DMA failed at the end of April. The previous high failed below 154.000 at 153.800. A break above this area may run into difficulty starting at 155.000 and followed by 156.000. The 156.625 area has also been resistive in the past particularly in late January. Traders will be keen to see if resistance at this area can hold or if the rebound higher can break out to new levels.