The AUDUSD pair went back and forth during the day on Monday, as we continue to bounce around the 0.74 level.

With that, we believe that the market should continue to be very tight, but as long as we stay below the 0.75 level, we can only sell this market for short-term trades.

If we break down below the 0.74 level on a daily close, at that point in time we would anticipate this market heading down to the 0.70 handle which is the next large, round, psychologically significant number, which tends to attract the market.

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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