The AUDUSD pair rose during the course of the day on Wednesday, breaking above the 0.9350 handle. This is where we expect to see a bit of resistance though, as it was a previous consolidation area, and was support.

If we can break the top of the range for the day, we believe that the Australian dollar will head to the 0.9450 level again, and then possibly make another attempt a break above the 0.95 handle, which would lead us into a more “buy-and-hold” type of market at that point.

It is not until we break below the 0.92 level that we would be sellers.

Editor’s Note: Equity investors/traders can use the Currency Shares Australian Dollar Trust (FXA, quote) ETF to take positions in the Aussie dollar without a FOREX account.  The ETF looks to track the price of the Aussie dollar (AUDUSD), minus ETF fee. The fund seeks to reflect the price of the Aussie dollar (AUDUSD) with the shares representing a cost-effective investment relative to investing in the FOREX market.

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