The AUDUSD pair fell significantly during the course of the day on Friday, breaking below the bottom of the hammer from the Thursday session.

This suggests that we are going to continue to go lower, and as a result we are sellers on short-term rallies that show signs of exhaustion, and of course a break down below the bottom of the range for the session on Friday should also extend the bearish pressure.

We have notched in buying the Australian dollar, as it looks so soft now, especially considering that even gold doesn’t do enough to push the Aussie higher.

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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