The AUDUSD pair tried to rally during the session on Tuesday, and in fact did.

However, we gave up about half of the gains so it appears of the Australian dollar will continue to grind sideways overall, with the 0.9350 level being very supportive and the “floor” of this market.

Alternately, if we can break above the 0.95 level, that would be a very bullish sign and have this market heading towards parity.

Ultimately, we feel that the market is going to do that, but recognize that it’s going to take a significant amount of momentum to actually occur.

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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