Christopher Lewis
Add to Bookmarks

If you ever wondered where money went to die, the most recent answer would be the Australian dollar. It is not that it has not been a performer in the past, it is just that the last month or so has been a miserable exercise in range bound trading. Whether or not we can break out anytime soon is an open question, but I quite frankly do not expect to see that happen in the short run. The 0.75 level on the bottom is the floor, while the 0.7850 level is the ceiling.

AUD/USD Video 14.05.21

Looking at the chart, you can see how range bound this market has been, and I just do not see that changing in the short term. Ultimately, this is a market that I think has to make a bigger decision but is digesting a massive amount of gains over the last year or so. Furthermore, I think it is also difficult to get above the major resistance barrier, which extends between 0.80 and 0.81 above. It is not until we break above all of that that the market could go much higher, perhaps reaching towards the 0.90 level.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

If we were to break down to the downside, meaning that we get below the 0.75 handle, the market could drop down towards the 0.71 level, possibly even the 0.70 level. That being said, I do not see that the market is ready to make a move in either direction anytime soon, so I think we continue to go back and forth more than anything else as we head through the summer. In other words, longer-term opportunities are probably going to be scarce here.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker