The AUDUSD pair broke down during the course of the session on Friday, clearing the bottom of the shooting star that had formed on Thursday.

Because of this, it looks like the markets ready to head to the lows again, somewhere near the 0.76 level. Expect a little bit of volatility here and there, but quite frankly it’s only a matter of time before the market sells off every time that we see a little bit of strength.

With this, we are very bearish of the Australian dollar as the US dollar continues to be the most favored currency in the world.

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.

Content curiosity of FOREXCycle