The AUDUSD pair initially fell during the day on Wednesday, but then turned back around to form a bit of a hammer.

This hammer of course suggests that we are going to see a bounce from this point in time, but we believe that the pair is hopelessly bearish at the moment and that this will simply offer a nice selling opportunity at the higher levels just above.

We have no interest in buying, and believe that this market will reach towards the 0.70 level given enough time.

Gold markets certainly are not helping the Aussie either.

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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