The AUDUSD pair broke down during the session on Wednesday, breaking below the fresh lows and signifying that the market should head down to the 0.85 handle.

With that being the case, we are very bearish of the Australian dollar still and believe that it should continue to go much lower.

With that being the case, we are sellers of rallies every time they appear, and we do think that this market will not only go to the 0.85 level, but probably the 0.80 level given enough time.

The US dollar continues to be the favored currency by Forex traders around the world, and that of course will work against this pair.

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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