If you’ve ever wondered where money goes, the most recent answer is the Australian dollar. It’s not that it hasn’t been successful in the past, it’s just that the last month or so has been a pitiful exercise in range-bound trading. Whether we will be able to break through in the near future is an open question, but to be honest, I do not expect this to happen anytime soon. The 0.75 level at the bottom is the floor and the 0.7850 level is the ceiling.
AUD / USD Video 05/14/21
Looking at the chart, you can see how limited the range of this market is and I just don’t see it changing in the short term. Ultimately, this is a market that I think has a bigger decision to make, but it has been digesting a huge amount of profits over the past year or so. In addition, I think it is also difficult to break the main resistance barrier, which stretches between 0.80 and 0.81 above. It is only when we break above all of this that the market can go much higher, possibly reaching the 0.90 level.
If we broke down, which means we break below the 0.75 handle, the market could fall to 0.71, possibly even 0.70. That being said, I don’t see the market ready to move in any direction anytime soon, so I think we continue to move forward and backward more than anything else throughout the summer. In other words, there are likely to be few long-term opportunities here.
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