The AUDUSD pair broke higher during the course of the session on Tuesday, but as you can see we are heading towards the 0.88 level, an area that has been of great interest to several different moves, and as a result we believe that eventually the sellers are going to step back in and continue to push of this market much lower.

It is most certainly in a downtrend, so that is the way that we choose to trade the Australian dollar.

On top of that, keep in mind that the gold markets are offering no support to the Aussie.

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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