AUD/USD: Short-Term Sold In A Directionless Context

If one market portrays like no other the lack of volatility in the currency market, that’s this exchange rate, which continues to be trapped in a narrow range for over a month now. It’s a market perfectly suitable for those playing range bound strategies and other methodologies with a reversal to the mean at the core. Look for overextensions to be faded both ways, especially the first part of this week, with very little in the way of stimulus for vol to pick up considerably. The latest bearish initiated on the back of the US NFP has a target of 0.7085, where a rebound is expected. On the upside, buyers need to regain 0.7110 for a retest of the previous highs around 0.7130.