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. Professionals

    Illiquid Real Estate: Correlation Pros and Cons

    Stock and bond markets are moving more closely in tandem with each other. Is illiquid real estate the vaccine for this correlation?
  2. Professionals

    How to Manage Fixed Income as Interest Rates Rise

    A look at how to manage fixed income amid the specter of rising rates, correlation to stocks, client expectations and more.
  3. Mutual Funds & ETFs

    4 Mutual Funds Warren Buffet Would Buy

    Learn about four mutual funds Warren Buffett would invest and recommend to his trustee, and discover detailed analysis of these mutual funds.
  4. Mutual Funds & ETFs

    Passively Managed Vs. Actively Managed Mutual Funds: Which is Better?

    Learn about the differences between actively and passively managed mutual funds, and for which types of investors each management style is best suited.
  5. Economics

    Why the Euro Failed to Become the World's Reserve Currency

    Examine the current state of the U.S. dollar as the world's reserve currency; learn the major reasons why the euro has failed to replace it in that capacity.
  6. Professionals

    Want to Start Up an RIA? Expect These Hurdles

    RIAs looking to strike out on their own need to overcome and plan for a number of hurdles.
  7. Investing Basics

    Are ETFs the Best Way to Diversify with Bonds?

    Are bonds safe or risky right now? It depends on the type of bond and how you invest in them.
  8. Investing Basics

    How to Use Boring CDs to Diversify

    Markets are volatile and are in for more punishment. CDs can help investors earn some interest while they're waiting out the storm.
  9. Professionals

    How Legacy Planning Can Help Capture New Clients

    Don’t underestimate the importance of legacy planning with your clients—it could serve as method for you to create new business with any heirs.
  10. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  1. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  2. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>
  3. How do mutual funds compound interest?

    The magic of compound interest can be summed up as the concept of interest making interest. On the other hand, simple interest ... Read Full Answer >>
  4. Who decides to print money in Russia?

    The Central Bank of the Russian Federation (CBRF), like its peers in most countries, is the governmental entity responsible ... Read Full Answer >>
  5. Does working capital include prepaid expenses?

    The calculation for working capital includes any prepaid expenses that are due within one year, since such prepaid expenses ... Read Full Answer >>
  6. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>

You May Also Like

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!