The AUDUSD pair went back and forth during the course of the day on Friday, testing the 0.74 level.

We ultimately pulled back to form a bit of a neutral candle, but the range is getting wider each day. Because of this, it appears like the volatility is picking up at this point in time.

We are going to trade this in the simplest manner possible: we are going to buying the Australian dollar we break above the top of the range for Friday, or sell the Australian dollar if we break below the range for Friday.

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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