The AUDUSD pair initially tried to rally but turned back around to fall significantly during the day.

The market has a larger consolidation area that extends all the way down to the 0.70 level, and we believe that’s where we are heading next.

With this being the case, the market should continue to see sellers on short-term rallies and signs of exhaustion.

We do not like buying this pair, we believe that the Australian dollar is going to continue to suffer at the hands of that performance in Asia, and of course global uncertainty in general.

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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