The AUDUSD pair fell during the day on Tuesday, breaking the back of the hammer that informed on Monday. Because of this, it appears of the market is ready to drift lower, possibly down to the 0.9350 area, an area that has been supportive recently.

We are looking for some type of meltdown, we are just simply looking for a return to the consolidation that we have been stuck in for the entire summer.

A break below the 0.9350 level has us looking for a move down to the 0.92 level, and a supportive bounce from there.

On the other hand, if we do bounce from here, expect another attempt at the 0.95 region.

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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