The AUDUSD market is currently moving within a fluctuating range. Since mid-April, prices have been mainly between 0.6354 and 0.6594. Recently, although buyers pushed prices to new highs, they couldn’t keep up the momentum beyond a key trend line. This allowed sellers to take control, pushing prices back below the 100 and 200-bar moving averages on the 4-hour chart. Last week, the price dipped close to the 100-day moving average at 0.64326, but bounced back after a weak US jobs report. This week, it dropped near the July 17 low at 0.64519. Although the price then rose above the 100-bar and 200-bar moving averages, it stalled near a swing point. Sellers regained control, causing the price to fall below the moving averages again.

Navigating Key Levels In The Market

Traders wanting to navigate this volatile market should keep an eye on key levels. The low at 0.6354 and high at 0.6594 might indicate a breakout from the current range. Important targets to watch are 0.6436 for the 100-day MA and 0.6452 for weekly lows. On the upside, monitor levels at 0.65109, 0.6526, and 0.6536, which sellers can use to gauge price movements. On August 7, 2025, the AUD/USD shows a familiar pattern, reminiscent of the choppy trading from mid-2024. The price is fluctuating without a clear trend, making it a trader’s market and increasing the risk of big, directional bets. Recent data highlights this uncertainty. The Reserve Bank of Australia kept rates steady at 4.35% this week, noting that inflation is slowing, but still remains high. In the U.S., the latest Non-Farm Payrolls report for July 2025 showed job growth slightly below expectations at 185,000, but not weak enough to change Federal Reserve policy. This tug-of-war is keeping the currency pair in a frustrating range. For derivative traders, this sideways market provides opportunities through volatility and range-bound strategies. One option could be to sell out-of-the-money call and put options to create an iron condor, allowing traders to collect premium while the pair remains volatile. The key is to set strike prices outside the expected trading range.

Key Psychological Levels And Immediate Term Strategies

Looking back to mid-2024, key psychological levels include major support at 0.6350 and resistance at 0.6600. While the current range is slightly higher, these historical points still serve as important psychological barriers. A strong break past these levels would suggest a significant shift in the market. In the short term, traders should observe the moving averages on shorter time frames. Sellers can use the 200-period moving average on the 4-hour chart, near 0.6685, to set their risk. Staying below this level keeps the focus on potential downside targets. If sellers maintain their hold, the first target would be the weekly low around 0.6610. Below that, the swing low from late July at 0.6580 provides a more significant support level. Buyers had an opportunity to push prices higher last week but failed, indicating a lack of strong conviction for a sustained rally. Create your live VT Markets account and start trading now.

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