By: DailyForex.com

The AUD/USD pair has tried it again and again to break above the 0.95 handle, and I think that is what is going to be crucial for the upcoming month. If we can get above there, as he the reason to think that this market will head to the 0.97 level. However, with the way that we’ve struggled in this area, it would not surprise me at all to see a bit of consolidation over the next month, or perhaps even the next several months. Right now, I see this market is essentially “landlocked” between the 0.92 level, and the 0.95 level. Because of that, I feel that the market will be one that more in tune with short term trading than anything else, meaning that longer-term charts will probably become almost useless until we break above the 0.95 handle.

That being said, I believe that this market could be quite profitable.

I will be looking towards the short-term charts in order to find my way in this market. After all, when you look at the last seven or eight weeks, we’ve essentially been bouncing around between the 0.93 and the 0.9450 levels. Because of that, it’s an even easier short-term traders market, but be aware of the fact that this market isn’t truly broken down into we get below the 0.92 level. Because of that, I’m not going to short this market based upon a short-term break down below the 0.93 handle. I think it would simply bring in more buying pressure given enough time.

If we did break down below the 0.92 level, which I think is very unlikely, this market would then head to the 0.90 handle, an area that has quite a bit of support at it. Nonetheless, I feel that this is going to be a sideways mode, and the fact that it is the month where most of the large fund traders are we a holiday probably adds more credence to that idea. Expecting a big move in the month of August is asking a lot of the market some years, and the way the July may had been, and to a lesser extent June, I don’t think are going to see it this year either.

AUDUSD 73114

Related Articles
  1. Economics

    Explaining Market Penetration

    Market penetration is the measure of how much a good or service is being used within a total potential market.
  2. Economics

    Calculating the Marginal Rate of Substitution

    The marginal rate of substitution determines how much of one good a consumer will give up to obtain extra units of another good.
  3. Investing Basics

    Calculating the Margin of Safety

    Buying below the margin of safety minimizes the risk to the investor.
  4. Economics

    What Qualifies as Full Employment?

    Full employment is an economic term describing a situation where all available labor resources are being utilized to their highest extent.
  5. Investing Basics

    Explaining Financial Assets

    A financial asset is intangible property that represents a claim on ownership of an entity or contractual rights to future payments.
  6. Economics

    Understanding Cost of Revenue

    The cost of revenue is the total costs a business incurs to manufacture and deliver a product or service.
  7. Economics

    What is a Code of Ethics?

    A code of ethics is a collection of principles and guidelines an organization expects its employees to follow.
  8. Investing Basics

    What are Class B Shares?

    Class B shares are one classification of common stock issued by corporations.
  9. Economics

    Understanding Cash and Cash Equivalents

    Cash and cash equivalents are items that are either physical currency or liquid investments that can be immediately converted into cash.
  10. Economics

    Explaining Carrying Cost of Inventory

    The carrying cost of inventory is the cost a business pays for holding goods in stock.
RELATED TERMS
  1. Revenue

    The amount of money that a company actually receives during a ...
  2. Substitute

    A product or service that a consumer sees as comparable. If prices ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Equity

    The value of an asset less the value of all liabilities on that ...
  5. Principal-Agent Problem

    The principal-agent problem develops when a principal creates ...
  6. Corporate Culture

    The beliefs and behaviors that determine how a company's employees ...
RELATED FAQS
  1. Are spousal Social Security benefits taxable?

    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  2. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  3. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  4. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  5. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
  6. Is Argentina a developed country?

    Argentina is not a developed country. It has one of the strongest economies in South America or Central America and ranks ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!