The AUDUSD pair broke down a little bit during the session on Tuesday, but quite frankly we have a lot of noise below us.

At the end of the day though, we are most certainly in a downtrend, so therefore we feel as if the market can only be sold.

If we break down below the bottom of the range, we are willing to sell the Australian dollar, but we also recognize that it will probably be very volatile.

If we rally from here, we are willing to sell resistive candles that appear between here and the 0.75 resistance barrier. We have no interest in buying.

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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