The Australian dollar rally during the day on Monday, as we continue to see a bit of a bounce later in the session.

This is a market that has a significant amount of bearish pressure above it though, and I believe that the 0.7450 level above will act as a bit of a “ceiling” in this market.

Any exhaustive candle between here and there is a selling opportunity from what I can see. I think that we will eventually reach down to the 0.70 level below as the Australian dollar continues to suffer.

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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