AUDUSD is finding resistance at the top of its range, visible on the 4-hour forex time frame. At the same time, stochastic is moving down, which means that there’s enough selling pressure to push price down.

A strong selloff could last until the bottom of the range near the .9220 levels.

A weak one could only last until the mid-range area of interest near the .9300 major psychological support.

Shorting at market with a tight stop above the previous spikes or the .9450 handle and a target of .9200 could yield a high reward-to-risk ratio but it might be prudent to adjust the stop to entry once price tests the .9300 area.

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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