AUD/USD appears to be forming a smaller range on its 1-hour time frame. The pair is on its way to test resistance at the .9300 major psychological level while stochastic is giving the overbought signal.

There are no reports due from Australia or the U.S. today, which suggests that the pair could stay within consolidation.

If that’s the case, AUD/USD could edge back down to test the bottom of the range around the .9150 minor psychological level by the end of the week or next week. A tight stop above the previous spike near .9320 would yield a good reward-to-risk ratio.

By Kate Curtis from Trader’s Way