The AUD/USD pair fell during the course of the session on Tuesday, as we continue to meander around the 0.7750 handle.

We believe that a move below that level though has this market selling off towards the 0.76 handle, and then perhaps even lower than that.

Ultimately, the market will probably go to the 0.75 handle and we believe that the 0.80 level above is massively resistive.

That area is essentially the “ceiling” of this market, and we believe that any move towards it will elicit selling that we can take advantage of in the longer term downward move.

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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